Bitcoin Futures Soar to $21B, Hints at $70K Return
Bitcoin (BTC) futures’ notional open interest reaches over $21 billion, the highest in two years. Significant inflows into newly launched spot ETFs in the U.S. have propelled a 28% rally in Bitcoin’s value. FinCEN highlights a concerning rise in virtual currency use in online child exploitation and human trafficking cases.The dollar value locked in active Bitcoin futures contracts has soared to an impressive $21 billion, a figure not seen since November 2021, when Bitcoin’s value peaked at around $70,000. This surge in interest, covering both perpetual and standard futures, reflects the market’s growing confidence in the leading cryptocurrency. Despite a modest daily performance, trading at approximately $49,700, the year-to-date increase in open interest by 22% approaches the record $24 billion witnessed at Bitcoin’s peak.
Spot ETFs Drive 28% Bitcoin Rally
BTC’s notable 28% rise over three weeks primarily results from the influx into spot ETFs in the United States. Consequently, this has reignited bullish sentiments among investors and analysts. Bernstein analysts, including Gautam Chhugani and Mahika Sapra, predict that BTC could revisit and even surpass its all-time high. They are targeting the $70,000 mark within the year. Following this, the optimism is due to the launch of 10 BTC spot ETFs. These ETFs have significantly contributed to the cryptocurrency’s recent rally, even briefly pushing its value to $49,000.
FinCEN Reports Increase in Bitcoin Misuse
Amid Bitcoin’s optimistic market performance, FinCEN’s latest report reveals a worrying increase in its use for illicit activities. These include online child exploitation and human trafficking, with reported cases jumping from 336 in 2020 to 1,975 in 2021. In response to this surge, FinCEN has partnered with Canada’s financial intelligence unit on “Project Protect.” This initiative aims to fight the financing of human trafficking and cybercrime. Consequently, it highlights the complex, dual nature of cryptocurrencies in the modern financial landscape.
The post Bitcoin Futures Soar to $21B, Hints at $70K Return appeared first on FinanceBrokerage.
