As Bitcoin Comes Close to $19,000, Open Interest in BTC Futures Hits All-Time High

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Sun, 11/22/2020 - 11:37
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Alex Dovbnya
The aggregated value of outstanding Bitcoin futures contracts has surpassed $7 bln
As Bitcoin Comes Close to $19,000, Open Interest in BTC Futures Hits All-Time High
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Aggregated open interest (OI) on Bitcoin futures has surpassed $7 bln for the first time, according to U.K.-based derivatives data provider Skew.

Skew
Image by skew.com

Four exchanges (OKEx, Binance, Bybit, and CME) have more than $1 bln worth of outstanding derivatives contracts.     

Earlier this week, OI on Bitcoin futures contracts traded by CME Group notched a new lifetime high of $1 bln, highlighting growing institutional demand for the world’s largest cryptocurrency.

Futures funding rates are soaring

As reported by U.Today, Binance.US CEO Catherine Coley claimed that the massive crypto rally was driven by spot traders, which was evident based on the relative low funding rates of perpetual futures.   

However, the derivatives market is now heating up. Bybt data shows that futures funding rates spiked to their highest level since Aug. 18 when Bitcoin plunged over four percent. 

Funding
Image by bybt.com

Market uptrends that are led by derivative products usually show less resilience and tend to falter as soon as traders close their overleveraged long positions.     

Related CME Bitcoin Futures Open Interest Surges Above $1 Bln: Skew Data
Related
CME Bitcoin Futures Open Interest Surges Above $1 Bln: Skew Data

Bitcoin on the ropes

Bitcoin rallied to a new 2020 peak of $18,977 on Nov. 21 before retracing back to $18,100 the following day.

Funding
Image by tradingview.com

The cryptocurrency is down over three percent during its first major correction since Nov. 14.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.