As each cryptocurrency tries to make the most of the active market, the increase in volatility has made the cryptocurrency market a very competitive area. Bitcoin, the largest digital asset, has also been the watcher of the sudden surge that pushed it to a one-year peak of $12,400 on August 17. After the sudden rise in volatility, there was a fall in the value of BTC.
As the market stabilized last week, open interest was also fixed, causing the futures contract’s premiums to fall. BTC futures premium rates were rising in early August when the market rose. In September September premiums on the Chicago Mercantile Exchange [CME] rose to 2.76% from 2.05%, while retail platforms also witnessed a 2.25% rate for September. Annual premium rates for the CME were 19.11% and other platforms followed with 15.59%.
However, with a stable price, premiums for retail-focused platforms fell from 18% last week to 10%. According to data provided by Arcane Research, the CME premium has remained significantly higher than retail platforms since it fell from 21% last week to 18%.
This showed that institutional investors were more bullish on BTC than retail investors in the short term. In CME, premium rates for September contracts were close to 1.59%, while other platforms were noticing premium rates of 0.89%.
As premiums fell, the open interest on CME declined but did not fall. OI stood at $713 million on August 25, while Bakkt’s Oi fell from its peak of $ 27 million to $9.5 million. That loss on Oi could be a result of August’s BTC futures, which ended last week.
