Bitcoin futures hit $20.3K right before BTC price drops $1K in 10 minutes

Bitcoin (BTC) futures hit $20,000 on Dec. 1 as all-time highs finally began to convert into a new price era for BTC/USD. Data from TradingView showed Chicago Mercantile Exchange (CME) Bitcoin futures heading past the historic $20,000 mark during Tuesday trading. BTC price: $20,000 sparks unique volatility At press time, highs of $20,300 had appeared amid characteristic volatility, which saw BTC/USD crash to $19,000 in under ten minutes. BTC/USD 1-minute chart for Dec. 1, 2020. Source: TradingView “Worth noting that a $1,000 swing is just 5% now. Adjust accordingly,” popular…

Bitcoin price hits $19K as bulls show no fear of record futures gap

Bitcoin (BTC) returned to $19,000 on Nov. 30 as a weekend surge continued to produce fresh gains for investors and hodlers. BTC price up 18% against weekly lows Data from Cointelegraph Markets and TradingView showed BTC/USD retaking another key psychological level during Monday trading. The weekend had already produced major upside for the pair, which late last week dived to $16,300. By the start of Monday, $18,600 had appeared, with Bitcoin going on to deliver returns of at least 17% versus those lows. As Cointelegraph reported, a giant $1,300 CME…

Data shows Bitcoin price drops days after BTC futures open interest hits $1B

There was a time when BitMEX derivatives exchange reigned sovereign over other exchanges, and the company effectively held a 50% market share until July 2019. For this reason, traders kept a close eye on every indicator connected to BitMEX, including its funding rate, open interest, and basis. Open interest measures the total number of contracts held by market participants. As the figure rises higher, so does the potential size of liquidations. On Aug. 2, a $1,400 crash happened as $1 billion in futures contracts were forcefully closed due to insufficient…

CME overtakes OKEx as largest Bitcoin futures market

CME Group has become the world’s largest Bitcoin (BTC) futures market following a surge in open interest over the past month, industry data shows.  In a Friday tweet, Arcane Research announced that CME had overtaken OKEx as the world’s largest Bitcoin futures market. Citing data from Skew, a market intelligence firm, Arcane said open interest in CME’s Bitcoin futures contract has reached $1.16 billion. OKEx, meanwhile, registered $1.07 billion. “Institutional investors are here,” Arcane said. CME’s Bitcoin futures market has more than doubled over the past month, with more traders…

Record $7.4B Bitcoin futures open interest shows pros still expect $20K BTC

Bitcoin (BTC) price failed to blast through the $20,000 level this week but multiple records related to volume and open interest were made on the way up to $19,484. One notable achievement was the open interest on aggregated futures contracts reached $7.4 billion at derivatives exchanges.  BTC futures aggregate open interest. Source: Skew As depicted above, there has been a 110% increase over the past 6 months, and it is also worth noting that the Chicago Mercantile Exchange (CME) now holds over $1.1 billion of these contracts. This data is…

Crypto derivatives exchange Bybit launches quarterly Bitcoin futures

Bybit announced Thursday that it will roll out a BTC/USD quarterly futures contract on Nov. 30. Two contracts will be offered at launch — BTCUSD1225, settling on Dec. 25, 2020, and BTCUSD0326, which will be settled on March 26, 2021. Bybit says the new futures contracts have no funding fee, which means traders can hold the position without charge as long as the contracts are still in effect. Like traditional futures contracts, Bitcoin (BTC) futures allow traders to buy and sell the digital currency at a predetermined price at a…

World’s dominant crypto futures market could face regulatory shake-up

Proposed regulations targeting Hong Kong’s blockchain industry could have far-reaching consequences for the crypto derivatives market, according to new research from Messari.io.  In a report published on Wednesday, researcher Mira Christanto said the Special Administrative Region of Hong Kong, which happens to be the dominant market for crypto futures trading, could be clamping down on unregulated exchanges as part of a broader push for more governance. The researcher cited a recent proposal from the Hong Kong Securities and Futures Commission, or SFC, that would require all crypto businesses to fall…

Bitcoin futures and options suggest that a major BTC price move is looming

Bitcoin (BTC) has been highly volatile in recent weeks, rallying above $16,000 for the first time in three years. But the futures market’s open interest indicates that a large volatility spike is likely very close. The term “open interest” refers to the total sum of contracts that are actively open in the futures market. If the open interest is high, it means there is a high number of traders betting on Bitcoin price action. Bitcoin futures aggregated open interest. Source: Skew Currently, as of Nov. 13, Bitazu Capital founding partner…

3 factors to consider before trading crypto perpetual futures contracts

As tempting as it can be to buy altcoins using perpetual futures, there are a few hidden traps that one should monitor closely.  Over the past few years, numerous exchanges began to offer altcoin futures quoted in Tether (USDT) and stablecoin pairs, which eventually became the standard. This change is more convenient for most traders but still presents some serious issues for those willing to keep long positions open for more than a couple of weeks. Before opening any trade at an exchange offering perpetual futures, traders should be aware…

CME Bitcoin futures spike during US presidential election

As votes came in on the night of Nov. 3, the day of the U.S. presidential election, Bitcoin’s (BTC) volume soared on the Chicago Mercantile Exchange, or CME.  “Overnight, before 9:00am NYT over 6,700 Bitcoin futures contracts traded (33,500 equivalent Bitcoin), 75% more than what has been observed YTD [year-to-date] and more than double the volume observed since launch,” a CME Group spokesperson told Cointelegraph on Wednesday. 6,700 BTC CME Bitcoin futures contracts traded between 5 PM CST on Nov. 3 and 8 AM CST on Nov. 4. CME Bitcoin…