Bitcoin futures trading breaks all-time records in terms of volume and open interest


  • The impressive numbers recorded by future volume and open interest pushed the price up to nearly $14,000.
  • Big money traders with short positions liquidated their holdings as Bitcoin achieved an 18-month high.

June 26 was a historic day for Bitcoin futures trading as Chicago Mercantile Exchange (CME) saw a record volume of $1.6 billion and record open interest for Bitcoin contracts of $373 million. This caused Bitcoin to reach an 18-month high of almost $14,000, which triggered a huge amount of Bitmex short-sellers to liquidate their positions abruptly.

@skew_markets tweets:

“Market reversed shortly after xbtusd open interest breached $1bln - it's not rebuilding as quickly this time...> $500 mln liquidated in last 24h - mostly on the sell side. Longs could be more leveraged than shorts as some shorts might be used without leverage to create synthetic dollars.”

At CME, Bitcoin futures trading has been growing dramatically in recent months. CME reported on June 20th:

“CME Bitcoin futures open interest reaches a record for a fourth consecutive day, with 5,827 contracts traded on June 20 (29,135 equivalent bitcoin; ~$280M notional) and a 25% increase from last Friday.”

However, the cryptocurrency optimists and traders have been at odds as the former have taken long positions while the latter have taken short positions. According to data taken from Commodity Futures Trading Commission (CFTC), big money traders have been taking bearish positions. The Wall Street Journal reported:

“Hedge funds and other money managers held about 14% more bearish ‘short’ positions in CME bitcoin futures last week than they did bullish ‘long’ positions, according to a recent Commodity Futures Trading Commission report.”

These traders are the ones who immediately liquidate their positions when the market neared $14,000. The WSJ insists that a bearish position doesn’t mean that these big money traders are betting against Bitcoin:

“Such data don’t necessarily mean hedge funds are placing outright bets that bitcoin will drop. The short bets could also be part of hedging strategies: for instance, a fund with a portfolio of bitcoins might go short at CME as insurance against the value of bitcoin dropping.”

The WSJ also notes that traders with fewer than 25 BTC contracts hold long positions outnumbering short bets by four to one, indicating that small investors have remained bullish.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin price prediction: BTC/USD sandwiched between massive resistance and support levels

Bitcoin managed to have a bullish day after five straight bearish days. So far today, BTC/USD has gone up from $10,190 to $10,223.45. The hourly chart shows us that BTC/USD went up to $10,253.

More Bitcoin News

Ethereum price analysis: ETH/USD majestically breakouts, eyes set on $220

Ethereum has been among the best performers this week. The second-largest cryptocurrency with a market cap of $22.9 billion is changing the narrative by pushing altcoins in a bullish direction irrespective of Bitcoin’s downward trend in the last few days.

More Ethereum News

Ripple price analysis: XRP/USD re-enters the $0.30-zone

XRP/USD re-entered the $0.30 zone after having two heavily bullish days in a row. Over the last two days, Ripple has gone up from $0.261 to $0.306, charting a 17.24% growth in price. The 4H chart shows us that XRP/USD went up from $0.281 to $0.306.

More Ripple News

Bitcoin Cash technical analysis: BCH/USD manages a hattrick of bullish days

BCH/USD has managed to chart three straight bullish days in a row. Bitcoin Cash has gone up from $318.35 to $325.30 today. The market had a bullish breakout from the triangle formation and is trending above the SMA 200, SMA 50 and SMA 20.

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Rangebound trading and September blues come upon the crypto market

Bitcoin finishes the week with marginal losses. The first digital currency recovered from the recent low of $9,886 but stayed in the red zone as of the end of the week.

Read the weekly forecast

BTC

ETH

XRP