Bitcoin Futures Open Interest Surges Above $17 Billion

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.”

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