Bitcoin futures open interest on CME nears 2021 all-time high

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The massive uptick in Bitcoin’s price is being driven by more than just speculation around the SEC’s potential approval of a roster of spot ETF products, Sycamore added. A decision on the ETFs is pinned for early January.

“I think there’s got to be more driving this now. It’s not just the ETF or halving speculation anymore. This is starting to take on a life of its own.”

Sycamore said the recent Bitcoin rally could more closely be attributed to crypto’s relationship with the macro environment, looking to the Federal Reserve’s signal to begin cutting interest rates as a more significant driver of price action.

In November, CME nabbed the top spot in Bitcoin futures open interest from Binance, which many interpreted as a signal that traditional finance institutions were beginning to show a greater appetite for crypto products.

Many analysts believe a spot ETF approval will result in a rapid upward price tick for Bitcoin, but not everyone is convinced the current rally can stick, with some predicting a “sell the news” style event in the days and weeks following a potential approval.

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