Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
- A futures contract is an agreement between two parties to buy or sell an asset (in this case Bitcoin) at a predetermined price at a specific future date. These are used for hedging risk or speculating on price changes.
- Open interest is the total number of these contracts that are currently “open” — that is, contracts that have been created but have not yet been exercised, offset, or delivered.
- In the past 24 hours, we have seen a 7% surge in futures open contracts, currently at 449,000 Bitcoin, equivalent to roughly $500 million, according to Coinglass data.
- This surge in open interest is coming from Binance, which currently has 158,000 Bitcoin in open interest contracts.
- This suggests volatility could be on the horizon, which the crypto market has been short of lately. According to Kaiko research, Bitcoin long-term volatility has been steadily declining since November 2022 and hit its lowest level in more than two years.
- In addition, SEC sues Binance for breaching securities law. Following the news, the market has seen $50 million in liquidations in 1 hour. Liquidations over the past 24 hours are over $100 million.
Futures Open Interest: (Source: Coinglass)
Volatility: (Source: Kaiko)
The post Bitcoin open interest grows $500M before SEC lawsuit with Binance, highest level since SVB collapse appeared first on CryptoSlate.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.