Bitcoin bears thinking that $58,000 was this cycle's top will be sorely disappointed, fresh investment data from past bull markets shows. Compiled by on-chain analytics resource Whalemap, statistics covering Bitcoin (BTC) buys of between $5 million and $7 million conclude that even at recent all-time highs, Bitcoin was far from a "macro top." "No FOMO in sight" for BTC During the 2017 and shorter 2019 bull market, Bitcoin saw mass buy-ins of a similar size: $5million to $7 million. When investments of that amount hit a peak, price action began to reverse, signaling the start of consolidation or a heavier …

In the past 48 hours, Bitcoin's (BTC) price has dropped by $13,360 and more than $2.6 billion worth of futures contracts have been liquidated. When including altcoins, the total sum of liquidations equaled $5.9 billion. After marking a record-high open interest at $19.5 billion on Feb. 21, the metric has stabilized at $16.5 billion. This means that half of the terminated leverage positions have been reopened. According to the top traders' long-to-short data and various funding rate indicators, retail traders took the largest hit. Top traders bought the dip The top traders' long-to-short indicator is calculated by using clients' consolidated …

Bitcoin seems to be struggling at the $58,000 level, which is leading some traders to fear a more significant correction could take place. While Bitcoin's (BTC) 2021 performance has been incredibly strong, its current 696% gain and comments from United States Treasury Secretary Janet Yellen suggesting that cryptocurrencies are used to finance terrorism may be enough to have investors feeling a bit cautious. Reducing open position sizes is usually the method most investors use to reduce exposure, but another way to manage risk is to use BTC options contracts to provide protection. Buying a put (sell) option is the easiest …

Bitcoin's (BTC) sudden $11,500 drop liquidated more than $1.64 billion worth of BTC futures contracts. This massive figure represents 8.5% of the total $19.5 billion in open interest, which coincidentally had just reached its all-time high. Although these are significant figures, they are proportionally lower than the $1-billion futures liquidation on Nov. 26, 2020. At that time, the 16% correction that followed Bitcoin price testing a $16,300 low reduced the open interest by 17%. In light of today's big price move, investors' positive expectations regarding Bitcoin remain unfazed, as both the futures contracts funding rate and the options 25% delta …

After a 160% increase over the past 3 months, the open interest on Bitcoin (BTC) options reached a new record-high at $12 billion. While this number might seem unusually high, it makes sense that the figure would increase as Bitcoin’s market capitalization surpassed $1 trillion. Although Friday's $3.2 billion expiry could negatively impact the market, these options are split among calls (neutral-to-bullish) and the more bearish put options. As shown in the chart above, Deribit exchange leads the market by holding an 85% market share. For the Feb. 26 expiry, 58,500 BTC contracts remain open and this is equivalent to …

Bitcoin (BTC) breached the $50,000 level on Feb. 16. But while failing to cleanly break the psychological barrier, it undoubtedly displayed the potential for even higher valuations. Meanwhile, futures and options indicators are misaligned, signaling excessive buyers' leverage, while options markets remain calm. After analyzing both markets, one might theorize what has caused this apparent incongruence. Options skew remained neutral-to-positive When analyzing options, the 25% delta skew is the single-most relevant gauge. This indicator compares similar call (buy) and put (sell) options side by side. It will turn negative when the put options premium is higher than similar-risk call options. …

Today Bitcoin (BTC) price rallied to a new all-time high at $44,900 shortly after Tesla announced a $1.5 billion investment. This event triggered $555 million worth of shorts to be liquidated in two hours and it happened as Bitcoin futures open interest reached $13.7 billion, which is just 3% below its historical high. These price moves drastically increased the cost of carrying long positions, mainly for those using perpetual futures. This indicator raised a yellow flag on how leveraged those investors are and their potential price impact. As shown adove, the aggregate BTC futures open interest just reached a $15 …

After bouncing from the recent short-term low, Bitcoin (BTC) price posted a 15% gain over three days as it climbed from $32,400 to $37,200. This was an impressive move given that BTC price had been trading in a sideways range for weeks and regardless of the reasons behind the surge, one would expect large traders and arbitrage desks to follow the trend. Interestingly, this is not the case as many of the top traders opened short positions as BTC commenced its 15% move. Even if a trader lacks confidence in a potential retest of the $42,000 all-time high, opening shorts …

On Feb. 5, a total of $1 billion in Bitcoin (BTC) options open interest is set to expire. This number is small relative to the past month's $4 billion options expiry, but monthly and quarterly options typically concentrate the most volume. Friday's expiry is somewhat unusual although it is balanced at the current BTC levels. Data also shows that bulls have many incentives to push up the price above $38,000. Deribit exchange holds 84% market share for Friday's expiry. By analyzing the aggregate open interest between $28,000 and $43,000, there are $300 million worth of neutral-to-bullish call options stacked against …

FTX is a cryptocurrency derivatives exchange backed by Alameda Research, a quantitative trading firm and crypto liquidity provider. The exchange launched in April 2019 and offered the usual spot trading, inverse swaps and futures contracts that can be found at other major platforms. By early 2020, the exchange launched its daily and weekly binary BTC options markets. FTT is the exchange’s native token and it’s issued on the Ethereum blockchain. FTT stakers are granted a trading fee discount based on a tiered system and other benefits include bonus votes in their polls and increased airdrop rewards. The first airdrop took …

When Bitcoin's (BTC) price dropped 10% to $29,150 on Jan. 27, something unusual happened with the Chicago Mercantile Exchange (CME) BTC futures contracts. As the price fell, these CME Bitcoin futures traded at a 1% discount to Coinbase, which signaled a disarrangement between both markets. Good morning. Bitcoin spot has almost full retraced the weekly. CME bitcoin futs are both backwardian and expire Friday. That is all. — i.am.nomad (@IamNomad) January 27, 2021 Immediately, traders suggested that futures contracts, which were set to expire in 48-hours, were responsible for the price dump. Now, before rushing to quick conclusions, one should …

A pseudonymous trader known as “Byzantine General” is short-term bearish as Bitcoin (BTC) continues to test the same $30,000 support area. Although the price of Bitcoin is staying above a key support level, the trader said the price action is not bullish. He wrote: “In the midst of all this chaos, here's a bitcoin chart. Not much to do. It's bearish no matter how you look at it. But we're sitting on support, so no swing short opportunity either... It's just waiting now. > YO needs to hold.” "Options market is signaling a short-term bearish view" Analysts see a similar …