Bitcoin bulls set to defend $13K as $450M in BTC futures expire Friday

A total of 62K Bitcoin (BTC) options are set to expire this Friday, and this is equivalent to $830 million in open interest. These massive numbers fail to reflect the fact that 58% of these options are now deemed worthless. As we approach the expiry date, call (buy) options above the current level begin to depreciate very fast. It is not worth paying $20 for the opportunity to buy BTC at $14.5K on Friday morning. Therefore, rolling options to the next month is not that helpful. October BTC options pricing.…

CME becomes 2nd biggest Bitcoin futures market

The CME Bitcoin futures market overtook Binance Futures to become the second-biggest Bitcoin (BTC) futures exchange by open interest. The data shows that the institutional volume is rapidly gaining a larger share of the cryptocurrency market. On Oct. 10, Skew reported that the CME Bitcoin futures market’s open interest rose sharply by 1,500 contracts. Since then, within three days, the price of BTC surged 9% to over $13,000. The growing open interest of CME’s futures contracts on BTC is likely to have a positive effect on BTC price, particularly as a…

The effect of CME Bitcoin futures on Bitcoin price

The price of one actual Bitcoin on the open crypto market, known as spot BTC, fluctuates based on a countless number of factors, such as trading volume, usage and adoption. However, other catalysts affect the asset in a roundabout manner. Cash-settled Bitcoin futures trading products from the Chicago Mercantile Exchange stand as one arguable highly referenced indirect element contributing to Bitcoin’s (BTC) price direction.  “The Bitcoin derivative products offered by CME are simply a vehicle for accredited investors to place sophisticated and risk-offsetting trades that would otherwise be inaccessible to…

Bitcoin futures impact price more than spot markets: Wilshire Phoenix

A new report from investment firm Wilshire Phoenix claims that the Chicago Mercantile Exchange’s, or CME’s, cash-settled Bitcoin futures trading products affect Bitcoin’s price even though they do not directly involve actual real Bitcoin (BTC). “The findings of Wilshire Phoenix indicate that CME Bitcoin Futures contribute more to price discovery than its related spot markets,” said an Oct. 14 report from Wilshire Phoenix, adding: “A leading futures market suggests the existence of a robust base of traders who may trade on such markets for many reasons such as trust in…

Lagging Bitcoin futures premium shows BitMEX is losing investor trust

For BitMEX, 2020 has been quite a rough year and from the look of things it’s only set to get worse.  The popular derivatives exchange is no longer as relevant and impactful on crypto market price action as it was 2 years ago, but a significant short-term price correlation among top exchanges has been proven repeatedly. A well-documented case occurred in May 2019, when a large sell order on Bitstamp caused a cascading $250 million liquidation on BitMEX. The following month, a Coinbase exchange outage triggered a $1,400 Bitcoin (BTC)…

What BitMEX scandal? Bitcoin futures data shows traders focused on $12K

BitMEX used to be the indisputable leader of Bitcoin (BTC) futures trading and if something similar to yesterday’s civil enforcement action were to happen back in 2015-2018 the crypto markets would have completely collapsed. Regardless of partial recovery to $10,600, which was relatively quick, derivatives markets held steady during the $500 drop down to $10,400. Neither BTC futures or options displayed any signs of discomfort to the negative news. The futures market nearly ignored the entire event and this is a strong indicator that investors remain bullish. It also suggests…

The year of the Crypto Futures Trading Commission, Sept. 25–Oct. 2

Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law. Editor’s note In a tweet late last night, President Trump said that he and Melania had tested positive for COVID-19. If you weren’t already aware of that, you may want to catch up on a deluge of wishes for life and death, alongside speculation as to Trump’s announcement being a hoax, before sitting down to this week’s Law Decoded. Or possibly not. Every week leading up to the presidential election features…

Why reduced Bitcoin futures volume may signal the start of a new bull trend

Bitcoin (BTC) futures volume and open interest are declining rapidly. Data shows that since the September peak, BTC futures volume has dropped by 60% from over $25 billion to around $10 billion. Bitcoin futures volume by exchange (September). Source: Digital Assets Data While the decline in trading activity could ostensibly seem like a negative metric, it could also indicate that a bull cycle is emerging.  Why declining futures market activity could boost Bitcoin price The Bitcoin futures market represents most of the overleveraged trades in the Bitcoin market and popular…

CFTC charges crypto futures trader for failure to register in the US

On Monday, the Commodity Futures Trading Commission filed charges against Laino Group for soliciting U.S. investors to trade in futures on commodities including Ether, Litecoin and Bitcoin without registering with the commission. Per the CFTC’s complaint the St. Vincent-registered Laino Group, doing business as PaxForex, used a network of U.S.-based affiliates to solicit American retail investors. In doing so, Laino Group violated the Commodity Exchange Act. The CFTC did not specify the extent of Laino Group’s activities. The commission’s request for relief indeed suggest that they themselves don’t know how…

Will the CME Bitcoin futures gap buyers at $9,600 be left in tears?

The recent week has been relatively dull on the price movements of Bitcoin (BTC), as a slow upward trend was established after Bitcoin’s price found a footing at above $10,000. This rally then continued toward $11,000 on Sep. 18 but was pushed back by some short-term resistance levels.  The previous week has been focused solely around Uniswap (UNI) and the airdrop of its token, combined with several listings on high-end exchanges. At the same time, let’s take a look at the price of Bitcoin and its charts to gauge where…