Bitcoin’s uptrend continues with prices rising over 10% this month, extending October’s 40% gain and setting a new record high of over $68,000.
According to Arcane Research, the number of open contracts on CME, when excluding the BITO contracts, is down 45% since its Oct 25 peak.
The CME-based futures, particularly the regular ones with a contract size of 5 BTC, are considered a proxy for institutional activity.
With large traders taking a backseat to retail investors, bitcoin’s bullish momentum may slow.
Readers, however, should note that a bullish move in bitcoin may remain elusive if the higher inflation number revives fears of faster interest rate hikes by the Fed, sending the dollar, short-duration bond yields higher and equity markets lower.
While the Fed announced the beginning of the gradual unwinding of liquidity-boosting bond purchases last week, it stuck to its view of inflation being transitory, calming fears of an early interest rate hike.
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