The institutional traders on CME Group’s Bitcoin futures trading desk and the retail traders and crypto whales trading on BitMEX often dominate the market and dictate where the market goes next.
With Bitcoin futures contract expiry coming up this Friday, and with BitMEX open interest soaring to new highs every hour, an incredibly massive and volatile move is expected in Bitcoin markets in the coming days.
Volatility Inbound: BitMEX Open Interest Soars Ahead of CME Bitcoin Futures Expiration
Crypto traders and analysts will consider any and all information and data they can get their hands on that might give them a read on the market and a competitive edge.
They regularly conduct detailed fundamental analysis including stock-to-flow models, review hash rate growth, dormant Bitcoin addresses, and more.
Related Reading | Bitcoin Stock-To-Flow Model Updated To Account for Satoshi’s 1 Million BTC
They’ll also perform regular technical analysis using a variety of chart patterns, candlestick formation techniques, and indicators and oscillators to help them in their analysis.
Oftentimes, analysts will even rely on more unorthodox information, such as open interest on the margin trading platform BitMEX, or when futures contracts expire on the Chicago Mercantile Exchange trading desk.
CME contracts expiring often lead to a massive increase in relative volatility, and explosive price movements in the days leading up to and following expiry.
And each time open interest on BitMEX gets above $1 billion dollars or over 100K BTC, it typically results in a large rally or sizable drop.
Very much agree. Don’t let the guard down with futures expiry coming. Prepare for the unexpected https://t.co/km24SgSWsA
— Jacob Canfield (@JacobCanfield) January 28, 2020
Now, the two possible volatility triggers are coinciding and converging this week, suggesting one of the biggest moves the crypto space has ever seen may be in the cards.
When looking at the past performance of open interest, each time open interest reaches over 100K BTC or over $1 billion, the metric gets rejected, a large move results and open interest drops back down, only to build up again at a later date for another big move.
Open interest accounts for all of the currently open positions on the platform BitMEX – which dominates the cryptocurrency market by trading volume and impact.
The metric has reached $950 million and is approaching the important billion figure, and is also over 100K BTC. The surge in open interest almost guarantees an explosive burst of volatility in the coming days.
Coupled with CME futures expiration coming this Friday, there could be fireworks and the largest move in the crypto market in some time.
As can be seen in the chart above and indicated by Bollinger Band Width, leading up to each CME futures expiration causes an uptick in volatility.
Related Reading | Bitcoin is Officially About To Enter a Bull Market
A large move typically precedes or follows expiration before volatility dwindles again and the cycle repeats. According to the increase or decline following each expiration, there is no rhyme or reason to which direction Bitcoin takes.
However, which direction Bitcoin takes at this point is likely to dictate the trend for the foreseeable future, and is an especially critical moment for the crypto space. The post appeared first on NewsBTC. origin »
Bitcoin cooled off after its latest rally, but Futures demand soared to levels last seen over a year ago
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Onchain Highlights DEFINITION: Bitcoin futures open interest (OI) is the total amount of funds allocated in open futures contracts. Bitcoin futures OI has seen a further rebound recently. As Bitcoin’s price approached $70,000 earlier this year, futures OI reached unprecedented levels, signaling renewed investor interest and market engagement.
Bitcoin's recent price correction is closely tied to futures contracts, with record liquidations and shifts in market open interest
The post Bitcoin’s sharp downturn linked to futures liquidations: Bitfinex appeared first on Crypto Briefing.
When it comes to trading Bitcoin futures, investors have options across different exchanges. However, the two primary exchanges offering Bitcoin futures contracts are the Chicago Mercantile Exchange (CME) and ICE/US.
Bitcoin futures open interest on CME, a derivatives exchange approved by the Commodity Futures Trading Commission (CFTC), jumped to an all-time high of 118,540 BTC, worth over $4. 42 billion, according to data from CoinGlass on November 27.
Bitcoin futures have become an integral part of the cryptocurrency market. Futures are a financial instrument that allows investors to buy or sell Bitcoin at a predetermined price at a specified future date.
Quick Take The recent data analysis indicates a critical shift in Bitcoin futures contracts, particularly in the wake of the Grayscale lawsuit. Bitcoin open interest, the total number of outstanding futures contracts, has suffered a significant reduction, with a rough estimate of 400,000 Bitcoin in futures contracts representing one of the lowest readings year-to-date.
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The post Regulated Bitcoin Futures: A Faustian Bargain? appeared first on BeInCrypto.
The CME now accounts for a majority of activity in the standard futures market tied to bitcoin, one observer said, while explaining a relatively higher premium in futures listed on the Chicago-based exchange.
The United States Commodity Futures Trading Commission (CFTC) has filed charges against Gemini alleging that the exchange filed false or misleading statements relating to its bitcoin futures product.
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Data shows the Bitcoin crash from a few days ago flushed out $5.4 billion from futures open interest within the matter of hours. Cascade Of Long Liquidations Lead To 24.5% Reduction In Futures Open Interest As per the latest weekly report from Glassnode, when the price of Bitcoin crashed down to $42k a few days […]
Bitnomial, a U. S. -based cryptocurrency derivatives exchange company, today announced the launch of physically-settled Bitcoin futures with up to 35% margin. Initially, Bitnomial will offer trading in two quarterly contracts, Bitcoin US Dollar Futures, and Deci Bitcoin US Dollar Futures, sized for both institutions and individuals, and does not charge for market data or trading access.
The first US Bitcoin (BTC) exchange-traded fund is rapidly getting close to breaching a limit on the number of futures contracts it is permitted to hold, Bloomberg reported.
The post Bitcoin Futures ETF is so popular that it’s breaching futures limits set by TradFi appeared first on CryptoSlate.
All gas, no brakes. That’s the SEC’s sentiment regarding the potential launch of initial Bitcoin futures ETFs that could hit the market as early as next week. After fielding nearly a decade’s worth of crypto ETF applications, it’s without question a landmark moment.
According to the bank’s spokesman on Tuesday, Wall Street giant Citigroup (NYSE: C) is eager as they await regulatory approval to start offering bitcoin (BTC, -3. 59%) futures trading contracts on the Chicago Mercantile Exchange (CME).
Citigroup is now considering whether to offer its biggest clients the option to trade in Bitcoin futures, citing increased demand in the cryptocurrency space. According to the reports, the banking giant is currently awaiting approval to begin trading CME Bitcoin futures.
The Chicago-based derivatives market launched its Micro Bitcoin futures product in early May, providing investors with smaller positioning opportunities.
Goldman Sachs continues to move towards adopting cryptocurrencies and offering crypto products to its clients. The bank’s most recent move towards achieving this is its partnership with Mike Novogratz’s Galaxy Digital, which will allow the company to start offering Bitcoin futures.
Galaxy Digital’s co-president Damien Vanderwilt announced today that his firm has partnered with Goldman Sachs to help provide bitcoin futures products. The partnership marks one of the first occasions where an American multinational investment bank has partnered with a crypto asset service provider.
The agency also “strongly” advised the investors of mutual funds with Bitcoin futures to beware of risks as the crypto asset is volatile and a “highly speculative investment.”
The post SEC to Weigh Whether Bitcoin Futures Market could Accommodate ETFs first appeared on BitcoinExchangeGuide.
The world's largest asset manager will allow two of its funds to get into bitcoin futures, as Guggenheim speculates a market pullback in the near term.
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The open interest in Bitcoin futures has almost doubled in the past two weeks, jumping from just under 6,000 open contracts to nearly 10,000. The activity represents an all-time high for Bitcoin futures since their inception.
Bitcoin futures platforms have recently attracted all-time high open interest. However, of the large numbers trading the contracts at various exchanges, one demographic is prohibited from contributing to the figures.
Open interest for Bitcoin futures markets has broken an all-time high. However, the last two times this happened, the BTC price crashed soon after. With this in mind, traders are nervous. Bitcoin (BTC) futures are roaring back after a bloody March and an April rebound.
In one fell swoop, the Bitcoin Futures market has been turned on its head with the leader board not only seeing a shuffle, but volume movements disappearing in one and reappearing in the other. Among The post Binance breaks Bitcoin Futures ATH as BitMEX looks barren appeared first on AMBCrypto.
According to TokenInsight's latest derivatives exchange report, the Futures market recorded the highest growth in trading volume across the digital asset ecosystem.
That's not all, however. The repThe post Bitcoin Futures hog the limelight, but Options could be the next big thing appeared first on AMBCrypto.
Zach Bradford, CEO of Bitcoin (BTC) mining firm CleanSpark, has predicted that the premier cryptocurrency may peak close to $200,000 this cycle. Bradford’s Bullish Take On BTC Price In an interview with research and brokerage firm Bernstein, CleanSpark’s CEO noted that historically, post-halving periods have led to several positive adjustments for BTC’s price.
As Bitcoin (BTC) recovers from recent lows of around $52,500, open interest in the digital asset is rising much slower than the asset’s price. Bitcoin Relief Rally Could Be Spot-Driven Cryptocurrency trader and investor Daan Crypto made an interesting observation about Bitcoin’s open interest and the asset’s price action. In a post published on X, […]
The volatility Bitcoin experienced this week had a particularly interesting impact on the derivatives market. Between June 23 and June 27, BTC lost its relatively stable support at above $64,000 and dropped to $60,000, with a brief dip below $60,000 before recovering on June 25.
Onchain Highlights DEFINITION: Number of days in Bitcoin’s traded history where holding Bitcoin has been profitable relative to today’s price. Bitcoin’s market history reveals a high percentage of profitable holding days, indicating strong long-term value retention.
While the usual volatility has been absent from the derivatives market, the slight fluctuations seen in the past few days still managed to reveal subtle market trends. Between June 12 and June 14, Bitcoin options open interest increased $20.
MicroStrategy has increased its convertible senior notes offering from an initially planned $500 million to $700 million. The notes will pay 2. 25% interest per year and are due in 2032. According to the company’s statement, investors will be able to convert them into shares of MicroStrategy’s stock.
