Bitcoin bets peak at $37 billion and ETF inflows hit a new record

Since Wednesday, data has shown that the long-short ratio is beginning to tilt toward a bull market, and some traders expect Bitcoin to hit new all-time highs in the coming weeks.

Bitcoin traders set a new record for BTC futures positions, with more than $37 billion in open interest. The surge in open interest coincided with record inflows into physical Bitcoin ETFs and a bullish long-short ratio, indicating positive market sentiment and expectations that Bitcoin will reach new all-time highs in the coming weeks.

Bitcoin (BTC) traders are now taking an all-time high position in BTC tracking futures, with open interest climbing to more than $37 billion late Thursday, setting a new record. Open interest in bitcoin hit an all-time high of $37 billion.

 That surpasses the previous peak of less than $37 billion in mid-March, when Bitcoin hit a new high of $73,700. The jump came as cash Bitcoin exchange-traded funds (ETFs) set a record for inflows in 18 days. According to The Block, BlackRock's IBIT saw a net inflow of $340 million on Thursday, while Ark Invest's ARKB saw a net outflow of nearly $97 million, according to preliminary data tracked by SoSovalue.

Since Monday, open interest has increased by more than $5 billion, and the price of bitcoin has risen from $68,500 to $71,000 during that time. Of the $37 billion, traditional finance giant Chicago Mercantile Exchange (CME) took the highest bet at $11 billion, followed by cryptocurrency exchange Binance at $8 billion. Significant long-short ratios show a bias towards bullish sentiment. The data showed that the long-short ratio rose above 1.0 on Friday morning from 0.94 on Thursday.

A long-short ratio above 1 means there are more long positions than short positions, indicating positive market sentiment toward the asset. On the other hand, a ratio below 1 indicates more short positions than long positions, indicating pessimistic expectations. As a result, several traders expect Bitcoin to rise further in the coming weeks, citing increased risk appetite and favorable regulatory expectations. "Bitcoin can overcome resistance within the $71,000 to $73,000 range and refresh all-time highs in the following weeks, driven by optimism in the financial markets." Russlan Lienka, head of markets at cryptocurrency exchange YouHodler, told CoinDesk in an email on Friday. This positive sentiment is due to the expected imminent interest rate cuts in the US and Europe, spurring capital flows into risk assets."

Lienka added: "The uptick in trading activity for memes such as GameStop and other low-rated small-cap stocks shows an increased appetite for risk."

This report shows how the current bitcoin market is thriving, with traders' high risk tolerance and investors' optimism about the regulatory environment making it possible for Bitcoin to reach new all-time highs.