Bitcoin (BTC) is approaching a $2 trillion market cap, driven by a surge of over $30,000 since Donald Trump’s victory in the U.S. presidential election earlier this month. As of now, Bitcoin’s market cap stands at $1.93 trillion, and with the current price nearing $97,000, it’s not far from reaching the $2 trillion mark, a feat that would require a price point of approximately $101,000 per Bitcoin.
A key factor fueling this bullish momentum is the surge in Bitcoin futures open interest (OI) on the Chicago Mercantile Exchange (CME). Open interest has reached a record 218,000 BTC ($21.3 billion), representing a significant increase of more than 30% since Nov. 5. Rising OI, particularly alongside price gains, signals strong positive sentiment in the market. Velte Lunde, head of research at K33, pointed out that the growth in CME OI over the past 15 days has surpassed average annual gains seen before 2022, suggesting that active traders are leading the charge in this rally.
In addition to CME futures, the growing interest in Bitcoin exchange-traded funds (ETFs) is contributing to the market’s strength. The recent introduction of spot Bitcoin ETFs and options tied to them is expected to attract more institutional investors, further increasing market exposure and liquidity.
Bitcoin’s increasing maturity is also reflected in the reduced volatility levels. Data from Glassnode reveals that realized volatility has dropped from over 100% to approximately 40% over recent years. As Bitcoin becomes more integrated into traditional financial markets, we’re seeing a decrease in market fluctuations. The rise of cash-collateralized contracts, which are less volatile than crypto-collateralized ones, has contributed to the market’s stability, with CME’s market dominance in the futures space reaching 33%.
This continued influx of institutional capital, alongside decreasing volatility, signals that Bitcoin is becoming a more stable and mainstream asset class, with strong potential for further growth.
