Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: Goodcat49 on August 01, 2020, 11:50:15 PM
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Bitcoin futures open interest is currently at an all-time high as traders expect more upside for BTC’s spot price.
Bitcoin (BTC) futures trading has been on a high since July 21 with both the Chicago Mercantile Exchange and Bakkt seeing sizeable increases in volume and open interest for their contracts. This resurgence in BTC futures comes as the spot market value of the largest crypto by market capitalization reached a new 2020 high.
Two months on from the May 2020 halving event, BTC has begun to show signs of the anticipated bullish advance. Bitcoin usually sets a new all-time high in the year following a block reward subsidy decrease, with BTC optimists stating the trend will continue.
Amid the current positive price action for Bitcoin, bullish sentiment appears to be gathering steam in the BTC futures market. Long positions currently outnumber shorts by almost 9-to-1, which means that any significant downward retracement could see a cascade of liquidations on optimistic bets, especially for traders with overleveraged longs. Back in mid-March 2020, the market panic caused by the COVID-19 pandemic saw Bitcoin fall to $3,800. This drop caused a cascade of forced liquidations, especially on derivatives exchanges like BitMEX.
https://cointelegraph.com/news/bitcoin-futures-traders-bet-on-bullish-price-action-but-not-too-fast
(https://images.cointelegraph.com/images/717_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9mZjRhNDAwZTliNjNjM2IwODA1MGYyMGJhOGJmMTFjYy5qcGc=.jpg)