CME Bitcoin [BTC] Futures Sees Largest Drop in OI Since Launch: Report
The futures monthly contract on CME saw the strongest declines in its history post-expiration on Friday.
While the price of the monthly contract for August closed ($11,350) around the opening ($11,630) itself. The high and lows of the futures contract on CME were $12,625 and $11,115. Apparently, the massive short position closing towards the end indicates profit-booking from positions.
![CME Bitcoin [BTC] Futures Sees Largest Drop in OI Since Launch: Report 16 bitcoin futures oi](https://cryptonewspipe.com/wp-content/uploads/2020/08/skew_cme_bitcoin_futures__total_open_interest__volumes_-1.png)
Nevertheless, despite the steep drop in OI, the current Open Interest over $600 million is considerable given its’ historic trend. At the time of the 2019 top around $14,000, the OI was only around $370 million.
According to the report by Market Science, leveraged funds account for the majority of trades on the platforms leading with a slight short composition. Moreover, non-reportable and other reportable positions fell slightly towards short inclination.
The net positioning of the market can be viewed in the chart below,
![CME Bitcoin [BTC] Futures Sees Largest Drop in OI Since Launch: Report 17 leveraged funds liquidity](https://cryptonewspipe.com/wp-content/uploads/2020/08/leveraged-funds.png)
The futures contract is, nonetheless, is still in contango with prices of the successive increasing up to $375 for January 2022 contracts.
![CME Bitcoin [BTC] Futures Sees Largest Drop in OI Since Launch: Report 18 futures monthly correlation](https://cryptonewspipe.com/wp-content/uploads/2020/08/bitcoin-oi.png)
On non-regulated exchanges, the OI is surging as well with close to $1 billion each on BitMEX and Okex. The funding rate for the XBT perpetual contracts on Bitmex is 0.03% which gives room for bullish pressure as well.
Do you think the bears are tired or getting ready for another surge? Please share your views with us.
Source: CME Bitcoin [BTC] Futures Sees Largest Drop in OI Since Launch: Report