Crypto News

Bitcoin Futures Open Interest Surges Above $17 Billion

Bitcoin Futures

The price of Bitcoin breached $50,000 for the first time in history across major futures exchanges, including Binance Futures. Stablecoin reserves at the exchanges also moved to all-time highs.

However, on spot exchanges, like Coinbase and Binance, the price of Bitcoin fell short of the $50,000 mark. CryptoQuant CEO Ki Young Ju explained that there was a negative Coinbase premium at the time of the rejection.

For Bitcoin to cleanly break past it, the negative premium has to be “cooled down.” The Coinbase premium has since stabilized, reaching parity with Binance’s Tether price.

Negative Coinbase premium keeping Bitcoin from reaching and holding $50,000

Bitcoin Derivatives Market Significant Growth In Bitcoin Futures

Moreover, the Bitcoin derivatives market has seen significant action with the aggregated open interest for Bitcoin Futures surging to more than $17 billion.

The Bitcoin funding rates have peaked out, signaling too much greed. However, they are strongly backed by the spot demand.

This was evident last week when nearly $450 million worth of futures short positions were liquidated in the market after Tesla disclosed it had purchased $1.5 billion worth of Bitcoin.

According to Skew analytics, the December 2021 Bitcoin Futures are trading at $10K above the spot price. Meanwhile, the BTC supply is dropping at a very fast rate.

The Bitcoin liquidity at the exchanges has dropped by 2.1% since the beginning of 2021. That equates to roughly 32,572 Bitcoins worth $1.57 billion having left so far.

Despite a strong rally in the Bitcoin price, miners have eased off selling. This could mean that miners have already realized some healthy profits to continue with their operations.

Miners may also believe that the price of Bitcoin will continue to climb higher prices given the surge in institutional interest.

Old holders of Bitcoin nonetheless have taken advantage of the market movement. On-data provider Glassnode released its findings in a recent report:

“Both the CDD and ASOL indictaors demonstrate that older coins have been on the move since BTC/USD price was around $12k, and have been moving at an increasing pace. This behavior slowed during the consolidation in January, and has started ramping back up this week.”

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

0 Comments
Inline Feedbacks
View all comments
Matt Borelli

Matt Borelli is a staff writer at CoinChapter, covering the daily developments in the cryptocurrency world. He is a Bitcoin enthusiast and proud Dogecoin holder. When not reporting on the latest cryptocurrency news, Matt can be found at the nearest baseball stadium.

Related Crypto News

Analyst Sees Bitcoin Price Hitting $55,000-56,000; Here’s Why
Bitcoin could reach anywhere between $55,000 and $56,000 in the coming sessions, says Jonny Moe.
Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...
Aker Launches Seetee To Invest in Bitcoin, Blockchain Projects
Aker announced it has launched a new company called Seetee that is dedicated to investing in Bitcoin and blockchain...
Ethereum Analysis: Rising Wedge Casts Doubts Over Bullish Bias Viability
Ethereum surged ahead of the New York opening bell, locking steps with its top rival Bitcoin after staying in...
Yearn Finance Breaks Off Merger With Cover
Decentralized Finance protocols Yearn Finance and Cover Protocol announced the end of their protocol merger. “We have decided to...

Featured Crypto News

Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...
Aker Launches Seetee To Invest in Bitcoin, Blockchain Projects
Aker announced it has launched a new company called Seetee that is dedicated to investing in Bitcoin and blockchain...
Ethereum Analysis: Rising Wedge Casts Doubts Over Bullish Bias Viability
Ethereum surged ahead of the New York opening bell, locking steps with its top rival Bitcoin after staying in...
Yearn Finance Breaks Off Merger With Cover
Decentralized Finance protocols Yearn Finance and Cover Protocol announced the end of their protocol merger. “We have decided to...
John McAfee Indicted On Fraud & Money Laundering Charges For ‘Pump And Dump’ Scheme
John McAfee and his executive adviser Jimmy Gale Watson Jr. have been charged with securities fraud. Federal prosecutors believe...