TronWeekly

Crypto World News

You are here: Home / Archives for open interest

open interest

Bitcoin Brace For A Potential Big Move Ahead: Here’s Why

by

Bitcoin accomplished a new feat as it fluctuated slightly below $30k. A fresh optimism was seen throughout the derivatives industry after a period of stagnation. The open interest in Binance for Bitcoin has reportedly reached its highest level since the FTX fiasco, according to well-known analyst and trader Daan Crypto Trades.

Over the period of 24 hours, BTC saw an increase of more than a whopping $500 million in the Open Interest [OI], a crucial market indicator. The previous 16-month high of $4,919,210,926.94 was observed on April 11, 2022.

Several top-notch analysts and market observers noted that BTC’s OI surge is now greater than 2.25% of the market cap, approaching yearlong peaks, and looking exceptionally overheated. Besides Binance, OI is almost hitting YTD highs and surging on three of the main exchanges, namely OKX, CME, and BitMEX.

According to another popular market analyst, Ali Martinez, this has lit a ray of hope on the horizon. Martinez thinks that crypto investors increased their long holdings as a result of the recent drop to $28,700, boosting hopes for a Bitcoin comeback.

The broader digital asset market has been in a state of stagnation over the last week, with Bitcoin trading in a tight, narrow range between $28,900 and $29,200. BTC last reached the $30K mark on July 24 [a few days before the US Federal Reserve issued a new 25 basis point interest rate hike].

The lack of significant price movement has left investors and traders searching in vain for a trigger that could take the market forward. As of right now, there are over $10 billion worth of open long and short positions on crypto derivative exchanges, which is a phenomenal year-to-date high.

Bitcoin’s OI Uptick Suggests This

This increase in Open Interest is a sign of increased trading activity and market activity, which could have a significant impact on the price movement of the coin. But experts have cautioned against aligning the metric with just bullish projections.

“Open interest in itself is not necessarily bad; it just signals high trading activity. This can go both ways, of course, but it will be explosive for sure.” Furthermore, if there is not a significant increase in trading volume, the short-term upward price movement of BTC may be cut short.

Dogecoin Celebrates Record-High Daily Gains In 17 Weeks

by

Dogecoin pulled off a new record this week, with a 10% increase on July 25, its largest single-day percentage rise since April 3. The surge is brought on by speculation that DOGE would be accepted as payment on the revamped Twitter site. Notably, the token also enjoyed the undivided attention of traders, as noted by the uptick in the perpetual futures market.

DOGE’s ongoing rally gained further momentum from the derivative market as the notional open interest reached the $500 million mark for the first time since April 19, per Coinglass data. Open interest is a sign of money coming into and going out of the market. In just two weeks, the figure has more than doubled.

Open interest has risen to 6.2 billion DOGE, which is getting close to the record of 6.43 billion set on April 8. It is believed that an uptrend is confirmed when the price rises steadily while its open interest increases.

Elon Musk, the world’s richest man, recently tweeted promotion of the new social media platform’s logo, which was first posted by a Dogecoin designer. Later, keen-eyed observers noted Musk’s minor modification to his Twitter bio, which now includes the letters “X” and “D,” and they surmised it has something to do with the meme coin.

X is believed to be a reference to Twitter’s new logo, while D is likely to be for Dogecoin, which he has previously publicly supported. To add more fuel to this speculation, Macro Guru and former Goldman Sachs executive Raoul Pal offered his perspective on Musk’s potential use of Dogecoin for global payments.

Dogecoin Could Be Used To Pay Twitter Content Creators

In a tweet dated July 25, Pal made the suggestion that Musk might use Doge as a medium for international payments to Twitter content creators. “He will use crypto to be able to make global payments for creators, etc. My guess is he uses Doge.”

At the time of writing this post, DOGE had edged up nearly 4% in the past 24 hours, trading for $0.08. And in the past week, it’s been up 15%, ranking among the top-performing coins. In addition to its impressive price growth, the trading volume of The OG meme coin has also increased dramatically, reaching levels last seen in early April.

Bitcoin Futures Open Interest Skyrockets To $13B; CME Tops Chart

by

Bitcoin continued to break new records as it oscillated back and forth a little below $40k. Following the price recovery in the spot market, optimism was also noted across the derivatives sector.

According to the latest stats compiled by Skew Analytics’ data dashboard, aggregated open interest [OI] in Bitcoin futures across the 12 biggest cryptocurrency exchanges surpassed a whopping $13 billion.

With this, OI hit a fresh ATH yet again on the 14th of January as interest in the market continued to soar high.

CME Tops The Chart For Bitcoin Futures OI

Out of the total OI figure, CME Group’s bitcoin futures accounted for $2.39 billion as the platform continued to soar in popularity as more institutional investors flock to the sector.

CME was followed by OKEx with $2.08 billion, Binance with $2.05, and Huobi with $1.04 billion. The once leading derivatives giant BitMEX was in the 8th position on the Skew charts amassing an OI of $0.88 billion.

Unlike CME which went on to become the largest market for Bitcoin Futures, ICE’s crypto venture, Bakkt has been laying low in terms of the OI numbers recording a mere $0.05 billion on the same day.

The latest news comes after a large liquidation event following the biggest price dump of the year. Despite more than $1 billion buy liquidation, the appetite of the futures contract trades appeared to be bullish as depicted by the OI figures. It was clear that the impact of the recent liquidations was in no match for the bullish outlook among the market participants.

Optimism From Professional Traders: Strong Bullish Projection For Bitcoin

The above charts also evidenced more and more inflow of money into the market, as traders expect a near-term rise in the crypto-asset’s volatility which was indeed a positive development for its spot price. Noting the rising optimism, prominent analyst Joseph Young tweeted,

“Bitcoin futures open interest is back to an all-time high once again. Open interest = the sum of all futures contracts in the market. When the market crowded, massive price swings like the Jan. 12 20% drop become more likely. Another flush drop above $42k could happen again.”

Ethereum Price Surge Drives Ethereum futures Open Interest to a Record High

by

For the first time in history, the gross figure of the open Ethereum’s futures contract eclipsed $1 billion, another sign of surging open interest in the second-largest cryptocurrency. The total value of all open bets in the value of Ethereum hit a new all-time high, as per data by blockchain analytics firm, Skew.

Ethereum futures

The new record comes as ETH ‘s price broke past the $300 price level and the imminent launch of Ethereum 2.0, which has boosted long-term investor trust in the potential of cryptocurrency. Future contracts refer to the consent of two participants to buy or sell a particular asset at a set price at a predetermined time in the future.

The buyers of the Ethereum futures contract anticipate the value of ETH will be different from the value of the contract before it is deployed, allowing for immediate proceeds upon completion of the commitment. Notably, the entities issuing futures contracts earn a fee referred to as premium, with the anticipation that the fee will be higher than the loss

Total Ethereum futures open interest surge by 30 percent

Total open interest in Ethereum futures surged by nearly 30 percent from June 20, from below $800 million to about $1.2 billion during press-time. Open interest is a very significant metric because it shows the fresh amount both issuers and traders have gambled in futures contracts before the expiry of the contract in the future.

Moreover, major crypto exchange OKEx is currently leading the pack with the most extensive Ethereum futures open interest of over $290 million. Crypto exchanges Huobi and BitMEX follow behind with $220 and $216 total open interest, respectively. In particular, Huobi recently revealed its plan to roll out Ethereum options trading later during Q3.

Ethereum leading the new market charge

Ethereum futures were surging earlier in the year, reaching almost $900 million before the coronavirus pandemic fears increased, and the further collapse of the U.S stocks market brought down the cryptocurrency market with it. The open interest in Ethereum futures crashed to below $400 by mid-March. However, the gross value of Ethereum futures open interest has been on a determined surge upwards since then.

The current momentum has been driven by the recent increase in the price of Ethereum. Nevertheless, the surging Eher future has more work to do if they match the king of the cryptocurrency futures contract, Bitcoin. Back on July 21, the open interest in bitcoin futures eclipsed the $4 billion mark. However, BTC futures contracts have raised at half the rate seen by Ethereum futures since the price began surging.