Bitcoin futures and options suggest that a major BTC price move is looming
Bitcoin has been highly volatile in recent weeks, but the futures market’s open interest indicates that traders should brace themselves for a big move. Bitcoin (BTC) has been highly volatile in recent weeks, rallying above $16,000 for the first time in three years. But the futures market’s open interest indicates that a large volatility spike is likely very close.The term “open interest” refers to the total sum of contracts that are actively open in the futures market. If the open interest is high, it means there is a high number of traders betting on Bitcoin price action.Bitcoin futures....
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The group reported it had observed an increase in trading volume and open interest for ETH futures and micro-sized ETH futures options, possibly in anticipation of the Merge. Major derivatives marketplace Chicago Mercantile Exchange Group intends to launch options trading for its Ether (ETH) futures products.In a Thursday announcement, the CME Group said that subject to regulatory review, it plans to launch options contracts for its Ether futures, sized at 50 ETH per contract. The futures options, expected to start trading on Sept. 12, will follow the firm launching micro-sized Bitcoin....
The upcoming expiration of $750 million in Bitcoin options, which would occur on the last Friday of the month, coincides with other important dates. A big Bitcoin (BTC) volatility spike could occur by the month’s end as two major factors come into play. The BTC options market nears a massive $750 million expiration and the CME futures market’s open interest has also soared.When an options expiry nears, holders of options contracts have to adjust their contracts before or right after the expiration. Often times, that could cause volatility in the price of Bitcoin.Options open interest.....
Ethereum bulls may have flipped $2,400 back to support, but Friday’s ETH options and futures expiry will determine if traders press the pedal for $3,000. The May 28 futures and options expiry could be a turning point for Ether (ETH), as the cryptocurrency rebounded 60% from its $1,730 low on May 23. Even though the open interest stands at $6.2 billion, only 16% is set to expire on Friday, as most of the action takes place on perpetual and June contracts.One must account for the options expiry, as it could present an imbalance of forces. This feature is not true for futures markets, where....
The futures options, expected to start trading on March 28, will come more than two years after the CME Group launched a BTC options trading product in January 2020. Major derivatives marketplace Chicago Mercantile Exchange Group will launch options trading for its micro Bitcoin and Ether futures products.In a Tuesday announcement, the CME Group said that subject to regulatory review, it plans to launch options contracts for its existing micro Bitcoin (BTC) and Ether (ETH) futures that will be 10% the size of the respective tokens. The futures options, expected to start trading on March....
Bitcoin prices have been volatile during the last few weeks, but have managed to climb higher in value at the same time. This week bitcoin derivatives markets, specifically futures and options, show that crypto asset traders should expect more swings going forward. Some traders believe that the digital currency’s price could fill two unfilled gaps on CME Group’s Bitcoin Futures chart with an upward trajectory toward $18,000. During the last few days, bitcoin (BTC) spiked over the $16k handle, as numerous cryptocurrency markets have seen some significant gains this week. On....