Bitcoin futures open interest has reached new highs in anticipation of Coinbase’s listing.

Spread the love

 354 Interactions,  2 today

Bitcoin futures open interest is skyrocketing, but amounts are plummeting.

Bitcoin futures open interest has reached fresh all-time highs ahead of Coinbase’s direct listing on the Nasdaq on April 14.

According to Glassode, a cryptocurrency industry data aggregator, Bitcoin open interest has surpassed $27 billion for the first time, as Bitcoin reached new peaks of $63,000. The occurrence of the milestone means that traders are speculating on higher values, though some may also be hedging against incoming fluctuations.

Binance sees the lion’s share in trading volume, with $5.2 billion in positions accounting for almost 20% of all remaining positions on the market. It is followed by Bybit, which has $4.66 billion, OKEX, which has $3.75 billion, and Huobi, FTX, and CME, which each have about $3 billion.

RECOMMENDED READ:  Chia crypto mining drives a 500% increase in Adata SSD revenue, prompting Galax to issue a warranty notice.

Despite the record open interest, Bitcoin futures volumes tend to have fallen over the past month, falling from $117 billion on March 15 to between $50 billion and $75 billion in April, according to Skew, a crypto derivatives data aggregator.

The dwindling amount could indicate that traders have been more wary about opening new positions as the deadline for Coinbase’s listing has advanced, with a large portion of open interest presumably covering positions opened in previous weeks and months.

Binance accounts for more than one-third of the $75 billion in BTC futures value traded in the last 24 hours, with $26.9 billion, led by Huobi with $14.5 billion, OKEx with $12.7 billion, and Bybit with $10.6 billion.

Open demand in Bitcoin futures, on the other hand, has decreased after a whopping $6 billion worth of contracts expired at the end of March. Options volumes jumped in April, indicating that many traders were hedging their bets as billions were mobilised to hedge against a drop to $40,000 last week.

RECOMMENDED READ:  Approximately 500 smuggled Bitcoin mining rigs seized by Turkish customs.

Bitcoin is not the only market on which derivatives traders are speculating, with open interest in Ethereum futures reaching record highs of more than $8 billion in recent weeks as transactions rose.

The options markets for Ethereum have also seen a rise in activity, with open interest reaching 30-day highs near $3.2 billion. Volumes of ether options increased by 90% overnight, from $200 million to $380 million.

However, several Ethereum traders seem to be looking past Coinbase’s listing this week, with analyst Cantering Clark earlier this month noticing large volume targeting rates beyond $3,200 for the end of June.

Leave a Reply

Contact Us