Open interest for Bitcoin options hit their all-time high of $2.14 billion on Sept. 24, a day before a huge quarterly expiry of 89,100 contracts — i.e., 47% of existing options contracts at the time. Options are derivative contracts that give the holder the right (though not an obligation) to purchase or sell an underlying asset at a predetermined price, also known as the “strike price.” Observing the OI trends before every monthly and quarterly expiry, there are spikes just before the date of expiry, and they have been incremental after each expiry, pointing toward the increased liquidity in the …

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 platforms like Binance, BitMEX, and ByBit enable leverage of up …

The United States Commodity Futures Trading Commission, or CFTC, has charged derivatives exchange BitMEX with operating an unregistered trading platform and violating Anti-Money Laundering regulations. According to a statement released Thursday, the CFTC filed a civil enforcement action in the Southern District of New York against five entities and three individuals who allegedly own and operate the exchange. The individuals charged include Arthur Hayes, publicly known as the CEO of BitMEX, as well as Ben Delo and Samuel Reed. The CFTC alleges that these individuals are owners and operators of BitMEX through a “maze of corporate entities.” The aforementioned corporate …

The global economy doesn’t seem to be in a good place right now, especially with countries such as the United Kingdom, France and Spain imposing fresh, new restrictions across their borders, thereby making the future financial prospects of many local business owners even bleaker. As far as the crypto economy goes, on Sept. 21, Bitcoin (BTC) dropped by nearly 6.5% to the $10,300 mark after having stayed put around $11,000 for a few weeks. However, what is interesting to note this time around is the fact that the flagship crypto plunged in value simultaneously with gold and the S&P 500. …

The price of Bitcoin (BTC) has been ranging between $9,800 and $10,500 for nearly a week after a short fall from almost $12,100 seen on Sept. 1. As BTC struggles to show any distinctive price movement, traders are generally cautious. Over the medium to long term, traders expect Bitcoin to recover and perceive the ongoing consolidation phase as a healthy pullback. From July 16 to Aug. 17, Bitcoin rose from $9,005 to $12,486 on Coinbase, with a pullback arguably necessary to neutralize the futures market. A large portion of Bitcoin’s daily volume comes from the futures market. Cryptocurrency futures exchanges …

LedgerX, a regulated futures exchange in the U.S., has introduced physically-settled Bitcoin (BTC) futures contracts. This allows investors to receive physical delivery of BTC and some analysts believe this will amplify the impact on the price of BTC. XBT/USD daily chart. Source: TradingView.com How physical delivery may impact Bitcoin price? When Bakkt first launched with the backing of its NYSE parent company ICE, it received significant hype. Most of the interest around the platform surrounded its physical delivery of BTC, meaning, if institutions desired, they could actually hold BTC via Bakkt’s custodial security service. At the time, Compound general counsel …

The price of Bitcoin (BTC) is approaching the last weekly candle for the month of August. Some traders believe Bitcoin’s performance over the next two weeks could decide whether its price drops below $10,000 again or sees an extended uptrend. The week’s weekly candle close coincides with the expiration of CME’s Bitcoin futures contracts and Deribit’s options contracts. It could potentially set a precedent for September, especially if Bitcoin closes above or below key levels. In the short term, technical analysts generally consider $11,800 as the key level for Bitcoin. A high time frame close below the level would raise …

BitMEX, one of the world’s largest Bitcoin (BTC) trading platforms, is now officially restricted to operate within at least two Canadian provinces. Following a request from the Ontario Securities Commission (OSC), BitMEX will be soon limiting the access to its platform by Canadian investors from Ontario province. A representative at the OSC told Cointelegraph that BitMEX held no regulatory approval to operate in Ontario. “BitMEX is not registered or recognized in any capacity in Ontario,” the spokesperson said. The representative said that BitMEX agreed to restrict Ontario investors from accessing the platform following discussions with the regulator. The OSC’s statement …

Popular crypto futures trading platform Bybit is currently hosting thousands of participants for its World Series of Trading, or WSOT, competition. With roughly 12 days left before the competition concludes, 12,368 participants currently pursue 200 Bitcoin (BTC) in prize money, valued around $2.4 million, data from the exchange's WSOT page shows. Bybit unveiled its WSOT at the end of July, noting the event will occur twice per year going forward. On Aug. 10. traders threw their hats in the ring, seeking to secure the best profit/loss ratio, or P&L, prior to the event's completion on Aug. 31. The event hosts …

CryptoCompare’s cryptocurrency Exchange Review for July 2020 has recently been published, giving an insight into last month’s exchange volume data and trends. Key points of interest include a flippening of sorts in the spot market, with the majority of volume now being traded on top-tier rather than lower-tier exchanges, and derivatives continuing to make ground on spot markets as they gain overall market share. As Cointelegraph reported, CryptoCompare also publishes an Exchange Benchmark, which ranks more than 165 global spot exchanges. Exchanges which are graded AA–B are considered top-tier, while those graded C–E are considered lower-tier. In July, top-tier exchanges …

Open interest on Ether (ETH) futures grew by 250% over the past three months to reach $1.7 billion. This incredible build up occurred as the cryptocurrency broke the $400 resistance to reach its highest levels in two years. ETH futures open interest in USD terms. Source: Skew Unfortunately, there is no way to ascertain whether futures contracts are mostly used for protection or are the result of increasing leveraged bets on Ether price reaching $500. The only reliable information from such a market is the basis, which is the comparison of a futures’ contract price versus the spot price of …

Today the price of Ethereum’s Ether (ETH) hit a two-year high according to data from crypto trading terminal Crryptowatch. Despite the breakout to $445, open interest on ETH futures remains steady at a new record high of $1.5 billion. ETH-USD 4-hour chart. Source: TradingView.com The record high open interest on ETH futures hints that traders remain bullish and further gains could be seen over the coming days. In recent months, Ethereum has seen strong momentum due to the explosive growth of the Decentralized Finance sector. The demand for Ether led to a sharp increase in gas (transaction fees) and this …