Bitcoin futures open interest on the CME exchange has reached a record 218,000 BTC, valued at $21.3 billion, coinciding with the cryptocurrency's market cap nearing $2 trillion. This surge in open interest reflects bullish sentiment among market participants, particularly following the recent U.S. presidential election. Bitcoin's price has increased significantly, crossing $97,000 earlier and edging toward the $101,000 mark needed to achieve a $2 trillion market cap. According to K33 research, the growth in CME open interest is primarily driven by active participants in the futures market, with a shift away from crypto-margined contracts towards cash-margining, which is perceived to reduce overall volatility in the bitcoin market. This shift also indicates that the CME has solidified its dominance in the futures market, with ongoing prospects for further growth fueled by upcoming ETF options. The report highlights the decreasing volatility in bitcoin, as realized volatility has dropped from over 100% to about 40% in recent years, suggesting that as bitcoin becomes more integrated into traditional finance, it may stabilize further.

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