• Bitcoin pushes on to nearly USD 9,600 on stock market impetus following fresh US stimulus plans
  • Open interest in CME Bitcoin options have multiplied ten times in the past 30 days

Bitcoin markets are recovering again on Tuesday, shrugging off Monday’s slip and pushing to a daily high so far of USD 9,595 (CoinDesk).

Most analysts believe it is the news of further US stimulus that has boosted markets, taking on the positive vibes from the stock markets and staving off, temporarily at least, the risk patterns that had been present just before.

Crypto managers Eterna Capital’s co-chief investment officer Asim Ahmad summarized: “Bitcoin has regained poise, possibly tracking the recovery in global stock markets.”

While the S&P 500 moved over 1% over the sentiment, equity markets in Europe also took heart, with most recording daily gains of over 2%, as the global effects of an economic recession are forgotten once more for the short term.

All this after the US central bank said that it would buy even more corporate bonds, ensuring that more money would be pumped into the economy to hold off what many economists believe is the inevitable: a crashing of the US economy amid historic contractions and unemployment. Once Bloomberg reported that the current regime was about to approve of an infrastructure proposal worth almost USD 1 trillion, that’s when the markets truly responded, as Bitcoin is making suggestions that it will benefit, whether banks impose negative interest rates, or print more money.

Bitcoin bulls will not like how the digital asset responded in tandem to stocks, however, as it suggests that the crypto could still have some risk to stock markets tumbling, a scenario that is far from unlikely should US Federal Reserve chair Jerome Powell produce what is expected to be a bleak outlook during the policy outlook presented today and tomorrow. Only last week, the central bank warned of years for economic recovery, putting a rally on hold.

Nevertheless, the long-awaited USD 10,000 breach is still within reach, amid reports that Bitcoin options on the Chicago Mercantile Exchange (CME) have achieved a 10x growth in the past month alone. This data comes from crypto analysis firm Skew, which shows that total open interest for CME BTC options grew from USD 35 million on 11 May to USD 373 million on 10 June, with a new all-time high recorded in six consecutive days ending 10 June.

Since CME users are mainly big traders and institutional representatives, this intense growth suggests that institutional interest in regulated Bitcoin derivatives is experiencing a massive spurt. The company itself said there were no plans to expand its offerings but has said that only Bitcoin will be involved in their products.

CME now accounts for more than 20% of the global bitcoin options market when looked at by open interest, which represents outstanding contracts, just behind the world leader, Deribit.

Blockhead Capital managing partner Matt Kaye reflects:

“[This growth is] …a strong signal that regulated institutions are exposing their books to Bitcoin. CME has a higher cost of capital and is closed on weekends, so anyone trading there is likely making those sacrifices because they have to.”

The only loser at the moment is Deribit itself, who has lost a significant portion of its market share to CME, while other competitors in the Bitcoin derivatives markets such as LedgerX, Bakkt and OKEx, have managed to retain their percentages since January 2020.

In fact, CME’s growth isn’t restricted to Bitcoin options, with its futures products also experiencing rapid growth to jump ahead of almost all its competitors on real and percentage growth metrics.

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