The number of open Bitcoin Futures contracts on BitMEX (XBTUSD) tend to reach with around 1 billion US dollars, or 100,000 BTC of its maximum. The Open Interest, which is heavily dependent on the most important psychological levels, shows that The market for crypto-derivatives has matured.
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How Mature is the market for crypto-derivatives?
The crypto-derivatives industry has long been regarded as a niche sector and is aimed at a handful of high-risk traders, their Trading style addiction is often a reflection of your game. With increasing maturity to the crypto market, however, were developed also on the derivatives.
The largest increase in the corresponding crypto derivatives was carried out immediately after the infamous Crash of December 2017, since the traders ways sought, against the decimated prices to hedge. One of the first providers of high-debt, derivatives, the Hong Kong-based BitMEX-exchange, its 100 times Leverage is described by many as borderline was.
What was once dependent as a value-less product, for gambling, is considered today however as a powerful Trading tool that reflects the mood of the market concerning crypto-currencies.
This is especially true for the Bitcoin Perpetual Futures Contracts (XBTUSD) of BitMEX. The high-risk, high-debt contracts the one of the a lot more established Chicago Mercantile Exchange (CME) exceed.
BitMEX has a much higher market activity than its competitors, since the platform has recently seen a strong rise in Open Interest. Open Interest, or total number of open options or Futures contracts is a measure of the flow of money in the derivatives market and is often the market.
The overwhelming mood in the maturity of the market seems to be optimistic, since about 80 percent of the XBTUSD positions are Long on Bitcoin.
Open Interest shows that BTC is heading for a period of volatility
The crypto-Analytics companies Skew Research has also found that Open Interest in Bitcoin-Futures (XBTUSD) of BitMEX achieved tends to be at a certain level at its peak. According to the data the platform provides the largest number of outstanding Futures contracts with around 100,000 BTC or USD 1 billion.
BitMEX Resources according to a period of increased volatility in the BTC is expected to price when the Open Interest reached on the platform of the unusually high Numbers over 100,000 BTC.
In a traditional stock trade, every increase in Open Interest means that market participants will be watching the price of the underlying asset, as an upward trend is expected. Rising Open Interest means that there is an increase of money and interest in a market, which is why it is generally accepted as a sign is considered to be that of the current market trend gains momentum.
With declining Trading volumes on the major stock exchanges, this could be the calm before the storm, because Bitcoin is preparing for a huge jump.