Bitcoin price is showing weakness after another sharp rejection from the $11,000 resistance level. As Bitcoin (BTC) enters the fourth quarter, the sentiment around the market remains generally cautious and neutral. Bitcoin might face a larger pullback in the fourth quarter due to several key factors. Throughout the past three years, every September monthly candle has closed red. The September monthly candle for 2020 is also on track to close as a red candle, indicating a lack of direction. From March through August, favorable financial conditions, a low-interest-rate environment and a multitrillion-dollar stimulus package caused Bitcoin and stocks to rally …

As of now, the $622 million total open interest for BTC futures expiry on Friday seems quite relevant. This Friday, a total of $100 million in CME Bitcoin (BTC) options are set to expire. 58% of these are call (buy) options, meaning buyers can acquire BTC futures at a fixed price. As the expiry draws near, call options 10% or higher above the current BTC price are deemed worthless. Therefore, there’s not much to gain in rolling over this position for October. September CME call options open interest (contracts). Source: CME Each CME contract represents 5 BTC, and the chart …

An aggressive week of selling has seen the price Bitcoin (BTC) fall below $10,000 for the first time since late-July, triggering fear in the markets. After posting a local top of roughly $12,500 on August 17, BTC consolidated between $11,250 and $12,100. However, the last three days have seen sellers reject $12,000 and take over the market. Roughly four hours ago, Bitcoin briefly changed hands for $9,990 after seven weeks of price action above $10,000. BTC/USDT on Binance, 1-hour chart : TradingView Despite buyers quickly pushing prices back into five-figures, many traders are anticipating that prices will drop further to …

Bitcoin derivatives witnessed a major expiry event with a notional value of over $1 billion. Today, $272 million of Bitcoin futures expired on the Chicago Mercantile Exchange, while over 65,000 Bitcoin options contracts expired across Deribit, CME and OKEx, having a notional value of over $740 million. Usually, major expiry events bring about a considerable change in volatility and price that can be seen through derivatives volumes, open interest and even put/call ratios. The Bitcoin (BTC) derivatives market, consisting mainly of Bitcoin futures and options, has grown multifold in 2020. This growth has seen the relationship between BTC’s price and …

Chicago Mercantile Exchange (CME) Bitcoin futures and options markets are set to mature this Friday, leading some traders to fear that the most recent BTC dump is a presage of weakening markets. According to a September 2019 Cointelegraph and Arcane Research report, there is typically a 2.3% drop ahead of each monthly CME expiry. Given the size of the upcoming expiry, it’s worth taking a moment to evaluate new data to evaluate if these ‘CME drop’ ghosts continue to spook the markets. The 2019 study mulls "deliberate manipulation" as a culprit but aside from that, it did find that 15 …

Today the open interest on Chicago Mercantile Exchange Bitcoin (BTC) futures reached a new all-time high at $841 million. Although this can't be deemed bullish on a standalone basis, it does signal that professional investors' interest in Bitcoin continues to grow at an immense rate. Further proof of this comes as MicroStrategy, a Nasdaq-listed company worth more than $1.2 billion, announced the acquisition of 21,000 Bitcoin for $250M. This shows that regardless of what critics have said about cryptocurrencies, savvy investors and entrepreneurs have recently built sizable positions in Bitcoin and some altcoins. CME Bitcoin futures open interest in USD …

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 …

Intercontinental Exchange subsidiary, Bakkt, is reporting record numbers of trades for its monthly Bitcoin futures contracts as BTC prices made a new high for the year. The institutional investing platform reported its highest ever figure for Bitcoin monthly futures on Jul. 28 with 11,506 contracts — an increase of 85% over the previous record. The move followed a surge in the underlying asset’s price to a 2020 high of $11,400. On July 29, Bakkt topped the new record with 11,706 contracts traded. “Talk about momentum! We beat yesterday's record with 11,706 Bakkt Bitcoin Futures traded today - that's over $125MM …

Bitcoin (BTC) derivatives have returned to the spotlight this week as price moves appear to spark a surge in open interest. Data from on-chain analytics resource Skew showed open interest for CME Group’s Bitcoin futures nearing record highs in U.S. dollar terms this week. Bitcoin futures open interest passes $450M After falling following Bitcoin’s block subsidy halving in May, the downtrend continued through last month before rebounding over the past seven days. Daily volume easily topped $300 million during the week, while open interest passed $450 million and was on course to top its all-time high of $532 million at …

The growth of the crypto derivatives market in 2020 has been a story of its own, mainly driven by Bitcoin (BTC) and Ether (ETH) options traded on exchanges such as the Chicago Mercantile Exchange, Deribit, OKEx, Binance and Houbi. Record Bitcoin options volumes are indicative of an increasing institutional interest in crypto, but there are better quantitative and qualitative indicators to use, such as open interest, Bitcoin’s price, frequency of block trades, institutional Know Your Customer processes and others. Compared with traditional derivatives, the proportion of institutional investors in the entire pool is still small, but it is clear that …

On June 26, $675 million worth of Bitcoin options expired, while industry experts remain divided on its potential effect on price volatility. Some believe the record expiration date will cause Bitcoin (BTC) to see a large price movement. With less than 24 hours until the highly anticipated expiration, Bitcoin’s price dropped by 7% on a single day on June 24. Traders speculate the drop was partially triggered by the uncertainty in the United States’ stock market. A rising number of coronavirus infections and concerns around the high unemployment rate led to an overall increase in caution toward risk-on assets, including …

Cryptocurrency market data aggregator Glassnode has reported that the number of Bitcoins (BTC) held on centralized exchanges has fallen to a 12-month low. The decline in exchange reserves comes amid numerous recent records for open interest in Bitcoin futures contracts, suggesting that many traders may be over-leveraged. Less than 15% of Bitcoin is held on exchanges On June 24, Glassnode reported a new yearly low in the number of BTC held on exchanges, with more than 2.624 million BTC. As such, the number of Bitcoin custodied on centralized exchanges has fallen by 10% since February of this year. The decline …