Open interest in Bitcoin futures is soaring, but volumes are falling.
Bitcoin Futures News
Bitcoin futures are a type of Bitcoin (BTC) trading that speculates on the upcoming price of the asset. Various BTC futures trading contracts exist with different expirations. Participants buy and sell Bitcoin futures contracts based on how they think Bitcoin’s price will perform in the future. Bitcoin futures contracts can be bought and sold before expiration. Once contracts expire, they are settled, and the holder receives the contracts’ worth in Bitcoin or cash, depending on the trading product and the going market rate for Bitcoin at the time. Cash-settled BTC futures pay out contract holders in cash, while physically settled Bitcoin futures pay out in BTC.
A number of crypto exchanges offer Bitcoin futures trading. Bitcoin futures also trade on mainstream markets through multiple avenues. The Chicago Mercantile Exchange, or CME, offers cash-settled Bitcoin futures, in addition to Bitcoin options on those futures.
Bitcoin’s long-to-short ratio has dropped to a five-month low, but bears are not taking the bait, suggesting bulls are still in control of BTC price.22520
Bitcoin’s three-month futures premium reached a record high of 50%, signaling market inefficiencies.46089
Retail traders have been using high leverage throughout the current bull market, but that's not the real reason for today's marketwide sell-off.51127
The filing from the regulatory body comes after BlackRock chief investment officer Rick Rieder said the firm had “started to dabble” in crypto.9797
Futures traders are using excessive leverage and historical data shows Bitcoin price crashes tend to occur after the futures premium reaches 30%.30445
The new futures contract will launch on May 3, 2021, pending regulatory approval.10197
Derivatives exchanges now offer $100,000–$300,000 Bitcoin call options, but how keen are pro traders to take the bait?31187
BTC held the $50,000 support while derivatives indicators remained healthy, signaling investors' optimism.30968
Ed Tilly, the CEO of Cboe Global Markets, says that the Chicago-based exchange holding company hasn't “given up on” crypto, despite earlier setbacks.7258
Analysts frequently correlate a high perpetual futures funding rate with market crashes, but is this the best way to analyze the metric?29604
Data shows pro traders increased leveraged long positions even as Bitcoin's price traded in a tight range this week.13454
Bitcoin may be en route to retest underlying support levels but the record $22.5 billion open interest on BTC futures shows bulls expect the uptrend to continue.20004
Trading Bitcoin options can be a great way to access leverage while avoiding the liquidation risk presented by futures contracts but investors must keep an eye on the premiums.39863
Traders are racing to speculate on Bitcoin in the derivatives markets, with open interest in BTC futures approaching $20 billion for the first time.17797