There was a time when BitMEX derivatives exchange reigned sovereign over other exchanges, and the company effectively held a 50% market share until July 2019. For this reason, traders kept a close eye on every indicator connected to BitMEX, including its funding rate, open interest, and basis. Open interest measures the total number of contracts held by market participants. As the figure rises higher, so does the potential size of liquidations. On Aug. 2, a $1,400 crash happened as $1 billion in futures contracts were forcefully closed due to insufficient margins. Although there is no magic number, traders tend to …

The Bitcoin (BTC) price failed to blast through the $20,000 level this week, but multiple records related to volume and open interest were made on the way up to $19,484. One notable achievement was the open interest on aggregated futures contracts reaching $7.4 billion at derivatives exchanges. As depicted above, there has been a 110% increase over the past six months, and it is also worth noting that the Chicago Mercantile Exchange now holds over $1.1 billion of these contracts. This data is indisputable evidence of the growing institutional participation in BTC markets. Volume soared to new highs, will BTC …

Bybit announced Thursday that it will roll out a BTC/USD quarterly futures contract on Nov. 30. Two contracts will be offered at launch — BTCUSD1225, settling on Dec. 25, 2020, and BTCUSD0326, which will be settled on March 26, 2021. Bybit says the new futures contracts have no funding fee, which means traders can hold the position without charge as long as the contracts are still in effect. Like traditional futures contracts, Bitcoin (BTC) futures allow traders to buy and sell the digital currency at a predetermined price at a specific future date. Bybit isn’t the first crypto trading platform …

The Colombian Stock Exchange announced it is joining the Consorcio Colibrí, a private initiative that promotes the adoption of blockchain technology within the finance industry. As Cointelegraph Español reported on Nov. 18, Consorcio Colibrí was formed by major financial institutions such as Bancolombia, BBVA, Santander Caceis Colombia, Deceval, Contrato Marco, Porvenir and Skandia, among others. Via a partnership with member firm Contrato Marco, the CSE will use the Colibrí platform's blockchain tech to improve operational efficiency in the over-the-counter derivatives market, which is currently time-consuming, expensive and difficult to reconcile with established manual procedures, according to the CSE. CSE president …

The price of Bitcoin (BTC) hit $19,469 on Coinbase, reaching its highest point since its December 2017 peak. Although the dominant cryptocurrency is close to surpassing its record high, there are some warning signs to take note of. Three potential reasons Bitcoin faces the possibility of a pullback at $20,000 are a bull trap, overhead resistance and an overcrowded derivatives market. A potential bull trap scenario A pseudonymous cryptocurrency trader known as “Bitcoin Jack,” who called the Bitcoin bottom in March, laid out a potential bull trap scenario. The term "bull trap" refers to a technical pattern wherein late buyers …

The price of Bitcoin (BTC) hit $19,000 on Nov. 24 for the first time since the historic rally in December 2017. Three key reasons are behind the dominant cryptocurrency’s strong momentum. The main factors buoying BTC’s ongoing rally are whale accumulation, decreasing exchange supply and explosive volume trends. Whales are still accumulating Bitcoin All throughout November, Cointelegraph reported that whale clusters were steadily forming as the price of Bitcoin rallied. These clusters emerge when Bitcoin whales buy BTC at a certain price point and do not move them. Analysts have interpreted this as a signal that whales are accumulating and …

In the last few days, Bitcoin (BTC) price has underperformed Ether (ETH) by almost 20%. Even though BTC seems to be struggling to break the $18,800 barrier, both cryptocurrencies display the same bullishness according to derivatives markets data. Ether is entering a parabolic rally as its Eth2 network launch progresses, and this optimism is reflected in the options markets. Despite the lack of similar price action from BTC, Bitcoin traders seem unfazed, and data shows they are still wildly bullish. Futures contracts for Ether and BTC are still bullish Analyzing the basis indicator is a useful procedure as it compares …

Some of the biggest names in blockchain have thrown their weight behind a new cryptocurrency derivatives exchange, signaling that the next bull market could be driven by institutional investors. Crypto derivatives platform Globe has raised $3 million in seed investments to launch its Globe Derivative Exchange. The new platform is aimed at bringing institutional investors into the world of cryptocurrency. Early-stage investors in the new venture include billionaire Tim Draper, blockchain investment fund Pantera Capital and venture capital firm Y Combinator. Pantera executive Paul Veradittakit cited growing institutional interest in crypto as one of the primary reasons why his company …

After Bitcoin (BTC) price suddenly dropped from around $18,500 to $17,200, some traders began to question whether a local top had formed but there are multiple factors that suggest the bull run is still intact. Following the initial pullback, BTC continuously showed extreme volatility, demonstrating market uncertainty. The four factors that show Bitcoin’s momentum remains strong are whale inflows, a strong market response, resilience above each whale cluster, and high open interest. Whales are not selling large amounts of BTC According to data from CryptoQuant, whales are not selling large amounts of BTC. This trend is noteworthy because Bitcoin is …

Earlier today, Bitcoin (BTC) price peaked at $18,476 after an impressive 35% bull run that appears to have started in early September. This powerful movement was followed by a correction to $17,000, a natural pullback. This adjustment led some investors to question whether the current formation resembles the $13,850 top formed in July 2019. Back then, a 30% drop followed a similar-sized rally, and afterwards it took Bitcoin 14 months to regain the $13,850 level. Coincidently, an intense flash crash happened right after that local high, but the price eventually recovered and stabilized near $12,800. If something similar happened this …

Bitcoin price is steamrolling toward $18,000, and excited traders are calling for the top-ranked digital asset to overtake the 2017 all-time high at $19,763. Unless you're a bear, reaching a new all-time high is great. But ideally, for a sustainable rally to maintain its pace, a staircase uptrend is more beneficial than a sudden upward climb. In recent weeks, BTC has continuously surged higher without prolonged consolidation periods or any major dips. The chances of a blow-off top is increasing A pseudonymous trader known as “Squeeze” specified that the lack of consolidation in Bitcoin has been a trend since late …

This week, Bitcoin (BTC) and Ether (ETH) prices reached new highs as a slew of bullish news continued to pump investors’ hope that the next crypto-bull market will mirror the one seen in 2017. Many novice traders simply follow spot prices on the major crypto exchanges to gauge the direction price might take. However, reviewing options markets data can provide additional relevant insights on market sentiment. Looking at the most recent activity in Bitcoin options, it is clear that some trades occurred on strikes that seemed improbable even for the most bullish analysts. These trades include 20 BTC CME December …