‘Looks Bad’ — Bitcoin Futures Echo Days Before March Crash, Says Trader

Bitcoin (BTC) futures were worrying analysts on July 10 as volume data suggested serious weakness and the potential for a major pullback. Uploading a weekly chart of CME Group’s Bitcoin futures to Twitter, Cointelegraph Markets analyst filbfilb did not mince his words describing the current climate. Filbfilb: BTC futures “almost identical” to March “Looks bad,” he summarized, noting that a volume indicator had returned to an identical setup as the week before Bitcoin crashed to $3,600 in March. “Almost identical positioning as the big drop last time and a clear…

CFTC Is Waiting on SEC to Allow Futures Trading of More Digital Assets, Says CFTC Chairman

In a July 7 interview with predecessor Jim Newsome, current Chairman of the Commodity Futures Trading Commission (CFTC) Heath Tarbert ran down a list of pending concerns standing between cryptocurrencies and the long-awaited promised land of regulatory clarity. Securities regulation and the CFTC’s purview Tarbert was careful to outline the distinction between the work of the CFTC and its elder brother regulator, the Securities and Exchange Commission, or SEC.  The determination of whether a digital asset is a security is “the sole province of the SEC,” Tarbert explained. “If their…

3 Indicators Show Traders Are Bullish on Friday’s Bitcoin Futures Expiry

Investors are magnetically attracted by the $1.1 billion Bitcoin and Ether options expiry scheduled to occur Friday, June 26, but they might be missing some relevant indicators of the futures contracts.  June 26 will also be the last trading day for many weekly and monthly Bitcoin (BTC) futures totaling $665 million at the time of writing. For futures participants, longs (buyers) and shorts (sellers) are always balanced; hence no price impact can be inferred. Despite this, some more nuanced indicators are providing telling signals of professional traders’ sentiment. The June…

Low Exchange Reserves Suggest Futures Traders Are Over-Leveraged

Cryptocurrency market data aggregator Glassnode has reported that the number of Bitcoins (BTC) held on centralized exchanges has fallen to a 12-month low. The decline in exchange reserves comes amid numerous recent records for open interest in Bitcoin futures contracts, suggesting that many traders may be over-leveraged. Less than 15% of Bitcoin is held on exchanges On June 24, Glassnode reported a new yearly low in the number of BTC held on exchanges, with more than 2.624 million BTC. As such, the number of Bitcoin custodied on centralized exchanges has fallen…

3 Things to Know About BTC Futures and Crypto Exchange Liquidation Engines

Most traders fail to understand how Bitcoin (BTC) derivatives exchanges handle their risk. There is a consensus that the winners get paid by the losing parties, but it is not as simple as it seems. Insurance funds were initially designed to protect clients positions during excessive volatile periods. Nonetheless, some exchanges such as BitMEX display a relatively steady insurance fund hoarding despite significant hourly price swings of 10% or higher. BitMEX insurance fund vs. Bitcoin. Source: cointrader.pro The above chart shows that the BitMEX insurance fund (orange line in BTC…

WisdomTree Files for ETF With a 5% Bitcoin Futures Share

WisdomTree Investments, a New York-based exchange-traded fund (ETF) provider, has filed for an ETF that would invest up to 5% of its portfolio in cash-settled Bitcoin (BTC) futures contracts offered by Chicago Mercantile Exchange (CME). The application, which was filed on June 16, asserts that the proposed fund will invest in the futures markets of four commodity sectors spanning agriculture, industrial metals, precious metals and energy.  No direct investments will be made in the underlying physical assets. Crypto ETFs have little luck among regulators Despite regulators having thus far rejected…

Bitcoin Price Dips Below $9K Amid Heavy Stock Market Futures Losses

Bitcoin (BTC) dropped below $9,000 on June 15 as a new week produced fresh selling pressure across macro assets. Cryptocurrency market daily overview. Source: Coin360 Bitcoin price tests $9,000 resilience Data from Cointelegraph Markets and CoinMarketCap showed BTC/USD entering the $8,000 range in Monday trading — for the first time since May 28. The latest bearish move follows a difficult week for Bitcoin in which markets almost regained $10,000 before shedding $800 in a matter of hours on Thursday. After spending the weekend at around $9,400, support gave way once…

BTC Futures Volume Posts 2020 Low, ETH Open Interest Surges

Trade volume on Bitcoin (BTC) futures exchanges has plummeted to new lows for 2020, with the BTC futures markets collective posting just shy of $5 billion in 24-hour volume on June 13. 76% of futures trading took place on OKEx, Huobi, and Binance — representing $1.4 billion, $1.3 billion, and $1.1 billion in volume, according to data published by market analysis firm Skew. BTC futures daily volumes: Skew The slump in activity has seen volume drop by approximately half for two consecutive days. Bitcoin open interest rallies strong While Bitcoin…

Binance Adds New Bitcoin Futures as Crypto Market Volume Turns Bearish

Cryptocurrency exchange Binance has launched a new Bitcoin (BTC) futures product despite institutional investors showing fresh uncertainty about the future. In a blog post on June 11, Binance revealed its quarterly futures contracts had gone live, with settlement due in September. Binance quarterly futures go live The move marks Binance’s latest venture into Bitcoin derivatives, a market currently dominated by fellow exchanges OKEx and Huobi. Users will be able to deploy up to 125x leverage, with the rollout first being desktop only before a mobile version comes online. Speaking to…

3 Things Every Crypto Investor Should Know About Trading Bitcoin Futures

Trading Bitcoin (BTC) futures might seem easy on the surface but there are a number of fees that investors seeking big returns from high leverage trades ignore.  In addition to trading fees, investors should also be aware of the variable funding rate that many exchanges levy and even maker and taker fees should be taken into account.  Let’s take a look at three things every crypto trader should know about trading Bitcoin futures. Know the funding rate There are quite a few hidden costs when trading Bitcoin futures contracts. The…