Open interest in Bitcoin futures is soaring but volumes are falling.
Bitcoin’s three-month futures premium reached a record-high of 50%, signaling market inefficiencies.
The filing from the regulatory body comes after BlackRock chief investment officer Rick Rieder said the firm had “started to dabble” in crypto.
Futures traders are using excessive leverage and historical data shows Bitcoin price crashes tend to occur after the futures premium reaches 30%.
Trading Bitcoin options can be a great way to access leverage while avoiding the liquidation risk presented by futures contracts but investors must keep an eye on the premiums.
Bitcoin’s recent 26% drop sent weak hands running for the hills, but derivatives data shows BTC’s setup is still bullish.
Buyers showed up quickly to reverse the crypto market dip through Monday.
Crypto exchanges offer USDT and BTC settled perpetual futures contracts but which is best suited for the average trader?
Investors are nervous that this week’s CME ETH futures launch will be a repeat of Bitcoin’s 2017 CME launch but data suggests otherwise.
A key Bitcoin price metric is signaling that top traders are comfortably positioned and expect BTC to secure the $50,000 level in the short term.