Open interest in bitcoin futures rose to an all-time high before Coinbase’s direct listing on the Nasdaq exchange on April 14th.
Cumulative data from the cryptocurrency market, Glassode, indicates that open interest in Bitcoin exceeded $ 27 billion for the first time when Bitcoin reached an all-time high of more than $ 63,000. This milestone indicates that traders can speculate on higher prices, although some may also hedge against upcoming volatility.
#Bitcoin Futures Open interest in futures contracts on major exchanges has reached record levels of over $ 27 billion as Bitcoin arrives on new ATHs
Diagram: https://t.co/GqgQ98W7Mq pic.twitter.com/KYBQC9WZxC
– glassnode (glassnode) April 13, 2021
Most of the trading activity comes from Binance, with positions of $ 5.2 billion representing nearly 20% of all outstanding positions on the exchange. It is followed by Bybit at $ 4.66 billion, OKEX at $ 3.75 billion, followed by Huobi, FTX and CME at $ 3 billion each.
Despite the benchmark interest rate, Bitcoin futures volume appears to have declined over the past month, dropping from $ 117 billion on March 15th to $ 50-75 billion in April, according to cryptocurrency aggregator Skew.
The drop in volume could indicate that traders have become more cautious about opening new trades as Coinbase’s listing date approaches, with a large percentage of open interest likely representing positions opened in recent weeks and months.
Of the $ 75 billion BTC futures contracts traded in the past 24 hours, Binance accounts for more than a third of the volume at $ 26.9 billion, followed by Huobi with $ 14.5 billion, OKEx with $ 12.7 billion. And Bybit is worth $ 10.6 billion. One billion.
On the other hand, open interest in Bitcoin options decreased as $ 6 billion worth of contracts expired at the end of March. Options increased in April and data shows that many traders locked their positions as billions were mobilized to guard against a collapse of up to $ 40,000 last week.
Bitcoin isn’t the only market that derivative traders speculate: open interest in Ethereum futures has also risen to record highs above $ 8 billion as volumes have increased in recent weeks.
Ethereum options markets are also experiencing increased activity, with open interest reaching a 30-day high near $ 3.2 billion. Alternative broadcast time jumped 90% overnight, going from $ 200 million to $ 380 million.
However, a lot of Ethereum traders seem to be looking beyond the Coinbase listing this week, as analyst Kantering Clark noticed large volume price targets in excess of $ 3,200 at the end of June earlier this month.