Bitcoin futures passed the $23 billion mark for the 5th time on Monday. April outdated. Crypto asset exchange Binance has taken the lead in terms of open interest in bitcoin futures, with as much as $10.5 billion in open interest.
Finance takes the lead in bitcoin futures
Not too long ago, the Bitcoin.com newsroom reported that the CME Group had taken the lead in open interest in bitcoin futures. This is no longer the case, as Binance has taken the lead in offering futures derivatives for BTC. Skew.com’s analysis shows that Binance is ahead of Bybit, Okex, CME, Huobi, FTX, Deribit, Bitmex, Kraken, Bakkt and Coinflex. Binance, Huobi, Okex and Bybit are also the leaders in daily BTC futures.
Coingecko’s data is different and shows that the total volume of bitcoin futures for 24 hours on Monday is about $22,984,388,835. Statistics show that Binance has $10.5 billion in open interest and $47 billion in daily volume over 24 hours. According to Coingecko’s statistics, the list of exchanges that follow Binance in the top 10 includes Huobi, FTX, Bybit, Okex, Bitmex, Deribit, Kucoin, Bitfinex and Bitget. Today, Huobi has $7.1 billion in open interest, while FTX Exchange has $6 billion.
Insiders at Glassnode also noted a huge open interest in bitcoin futures this week. Open futures reached a new historic high of more than $23.1 billion this week, with Binance and OKex accounting for the lion’s share of all contracts at 32 percent, Glassnode reported in detail on Monday.
Keep in mind that a large open interest can exacerbate market volatility in response to price corrections if the lever is unwound quickly. Interestingly, futures volumes have been falling steadily throughout the month of March, with this week being particularly quiet compared to volumes in recent months, Glassnode researchers said in the company’s weekly newsletter.
43% chance that bitcoin will hit $64K by the end of April, Cboe wants to get back into the bitcoin futures game.
Delta Exchange CEO Pankaj Balani says that according to bitcoin futures, BTC has a 43% chance of reaching $64,000 by the end of April. Suppose a BTC is trading at $5, then the skew is the difference in implied volatility of, say, a $52k call and a $48k put, Balani describes in a post on the Bitcoin.com newswire. In the case of positive skew, traders are willing to pay more for an OTM call to get a rise than for the delivered equivalent to protect against falling prices. As such, it can give us an indication of market participants’ expectations of spot price movements.
With BTC at $59k, options markets give 43% chance of reaching $64k and 31% chance of reaching $54k by the end of April. With the exception of a brief spike during the recent price action, realized volatility remains lower than expected. Looking at the different time horizons, traders are currently paying less for options that expire in April than for options that expire in May or June. The skew is approaching the level of mid-March, when the spot crossed the $60 mark, indicating an overall bullish positioning in the market.
Bitcoin futures have run amok in recent months and have been in high demand since the bull market began. Perpetual bitcoin options and swap markets have grown significantly, just as Deribit is now the king of the bitcoin options game. Additionally, call options at a BTC price of $100k to $300k by 31. December 2021. Meanwhile, Cboe Global Markets CEO Ed Tilley said the company may be reclassifying BTC futures.
We’re still interested in the area, we haven’t given up yet, Tilley said in an interview published Thursday. We want to build the whole platform. There is a huge demand from traders and institutions and we need to be there, the Cboe director added.
What do you think of the recent open interest in bitcoin futures? Let us know what you think about bitcoin derivatives market action in the comments section below.
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