22 Million Longs Liquidated on BitMEX, Will Bitcoin Price Gain Momentum?

As Bitcoin price struggles to cross $9,000, over 21MM Longs have been liquidated on leading derivatives exchange, BitMEX in a span of 6 hours. Furthermore, in 24 hours more than 1396 MM Longs and 1449 MM Shorts have been liquidated.
Bitcoin Price Struggles to Cross $9,000
Bitcoin bulls have failed to maintain price levels and about 21MM longs got liquidates in less than 4 hours. While in the present scenario, Bitcoin struggles to cross $9,000, the market sentiment is bullish with December futures contracts selling at $9075 and a high long/short ratio on spot exchanges.
Source- Datamish
On the 8th of November, Bitcoin dropped below $9,000. On the same day, 1.7 MM shorts and 57 Million longs were liquidated on BitMEX. Furthermore, on the 23rd of October, more than 200MM shorts were liquidated on BitMEX. That day Bitcoin price plummeted by 9% reaching $7,546. Bitcoin then regained the $8000 level a day after ending a short bearish cycle. However, Bitcoin’s price briefly passed $8,300 before tumbling to $7,546.
A look at Bitcoin Price Charts
Bitcoin is looking south after continuous losses and multiple rejections at key price resistance. Furthermore, the Bitcoin has also failed to cross the 3.5-month trendline sloping downwards from the 2019 high of $13,880.
Source- Trading View
It is likely that Bitcoin price further dips to $7,000 range. If the bulls manage to take control it is likely that Bitcoin will break the $9000 range. Bitcoin price has major support levels at $8,400 and $8000.
While leading crypto moguls have time and gain predicted that Bitcoin price will be in millions. The price charts suggest else wise. It will be interesting to note if the Bitcoin price manages to cross $10,000 before the end of the year. In the present case scenario, Bitcoin price is expected to trade range-bound, until a major event manages to shake its price.
Will Bitcoin bulls take over control? Let us know, what you think in the comments below!
The post 22 Million Longs Liquidated on BitMEX, Will Bitcoin Price Gain Momentum? appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC] Price Fails to Hold Above Weekly Close, $5 Mln Longs Liquidated on BitMEX

Bitcoin [BTC] rose $200 on Sunday as price broke above $9000. The psychological positive move along with green across the entire crypto market raises the sentiments of most traders towards the year-end.
However, it fails to hold the bullish psychological as the price has fallen back to $8950 levels. The price of Bitcoin [BTC] at 4: 30 hours UTC on 11th November 2019 is $8955.
Bitcoin Weekly Close
On a weekly scale, even after the positive move, BTC price closed on a red. According to Tone Vays, the weekly chart looks neutral, however, on a bearish count according to sequential analysis.
Similarly, on a daily scale as well, the 200-Day inability to break above the 200-Day Moving average brings it closer to a death cross with the 128-Day moving average.
He cites that the resistance for a bullish break-out this week out would be around $9600.
BTC/USD Weekly Chart on Bitstamp (TradingView)
Another Gap Fills on CME on the 4-Hour
The change in the price of Bitcoin over the weekend often creates a substantial gap with CME. As CME is one of the largest regulated exchanges for Bitcoin futures, it has a considerable effect on Bitcoin prices.
Moreover, with Bitcoin, it generally has a tendency to fill the price gaps with CME. The difference was about $215, as Bitcoin closed at $8885 on Friday. With the correction on Monday to about $8950 as filled most of the gap.
Moreover, the volume of the break was also not enough to justify a massive bullish breakout.
Bulls Still Scared of the Bears?
The bullish turn was accepted by the market contently as traders moved further long. Only a small percentage of short liquidations were noticed signaling a bullish inclination.
However, since Bitcoin fails to maintain the levels, about $5 million worth Bitcoin longs liquidates on BitMEX in less than 2 hours.
Bitfinex and BitMEX liquidations (Source)
Technically, Bitcoin is not out of the clutches of the bears. First and foremost, the 200-Day Moving Average continues to act as resistance and is now rising, currently at $9240.
The market sentiments are largely bullish with December futures contracts selling at $9075 and a high long/short ratio on spot exchanges. The funding rate on BitMEX and Bitcoin basis on Okex is also positive with large magnitudes signaling strong bullish inclination. However, there is still a lack of momentum at the moment.
Do you think the strong bullish inclination is justified or bears are still strong? Please share your analysis with us. 
The post Bitcoin [BTC] Price Fails to Hold Above Weekly Close, $5 Mln Longs Liquidated on BitMEX appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC] Slumps to $8700; $57 Million Longs Liquidated on BitMEX

Bitcoin price is once again below the $9000 level. After a period of relative stability, the BTC price is once again at crossroads.
Bitcoin Price Struggles to Stay Afloat
Stocks took a hit last Friday as trade tensions owing to the US-China trade deal continue to prevail. While the Dow Jones Industrial Average(DJIA) fell by 1% reaching 26,666 points, S&P Futures fell down to 3,085 points. Interestingly, stock prices have always indirectly affected the Bitcoin price. However, this time the case looks a bit different. First, BTC price came down to $9,200 mark and then went on to slide past the $9000 level and is presently trading at $8,802.
Source: Coinstats
While the prices are down, it has also raised expectations of an upcoming bull rally. However, BTC revisited the $9,500 level only for a brief period of time. Subsequently, even the bitcoin fear and greed index fell from 54 points to 42 points, returning into “fear” territory.
Furthermore, it is being predicted that Bitcoin faces another set of losses and the sudden spike above $10,000 was a temporary price rise. As a matter of fact, the Bitcoin price still holds the ability to rally by $1000 in a day. Presently, the chances of Bitcoin staying above $9,000 look bleak. Moreover, crypto exchanges are also facing significant selling pressure. The buying pressures are not that enough to push Bitcoin price any further.
$57 Million Longs Liquidated on BitMEX
Furthermore, 1.7 MM shorts and 57 Million longs have been liquidated on BitMEX platform, as per data provided by datamish.com
Source- Datamish
While the exact cause of this sudden price drop remains undisclosed. It is also likely that the price drop was due to whale price movements. It has been time and again contested that if whales actually affect prices. However, owing to Bitcoin’s relatively short history and erratic trading patterns, it is not a false supposition that whales do impact Bitcoin prices to a larger extent.
Will Bitcoin’s price fall further? Let us know, what you think in the comments below!
The post Bitcoin [BTC] Slumps to $8700; $57 Million Longs Liquidated on BitMEX appeared first on Coingape.
Source: CoinGape

Barely a Year In, Nasdaq-Powered DX.Exchange Is Shutting Down

Coinspeaker
Barely a Year In, Nasdaq-Powered DX.Exchange Is Shutting Down
DX.Exchange, the Nasdaq-powered digital trading platform, is temporarily shutting down as the operational costs have become too high.
Barely a Year In, Nasdaq-Powered DX.Exchange Is Shutting Down

Continue reading at Coinspeaker
Source: CoinSpeaker

BitMEX Email Leak – BitMEX Explains How it Messed Up

On November 1, BitMEX sent an email to thousands of its customers informing them about a change in the way it calculated its indices for its products. However, in the process, it ending up exposing 23,000 email addresses of its customers. In a blog post published today, BitMEX has explained that the accident happened because of a new tool that it used without testing it properly. 
What Happened?
On November 1, BitMEX sent an email to its customers. While the news was a good one for its users – it was updating its methodology for calculating indices for making the reference prices more fair, robust and accurate, it botched up the sharing of the news with them. In the email it sent to users, it also ending up sharing the email addresses of thousands of other customers in the “To:” field. No other information was leaked, however.
How it Happened?
BitMEX, in a blog post published today explained how the leak happened. BitMEX wanted to send the update about revamping its indices to all its customers dependably. For that, it has an in-house system dedicated to managing “the necessary rendering, translation, staging, and piecemeal (as not to trigger rate limits) sending of important email”. It also clarified that it had not sent an email to all its customers at once since 2017.
According to the blog, when BitMEX initiated the send, it realised that it would take more than 10 hours for the process to complete. The team wanted that all its customers should receive the email within a reasonable time. To enable this, the team rewrote its tool for sending email so that to “send single SendGrid API calls in batches of 1,000 addresses”.
The blog post further explained that since the team was short on time, it deployed the tool without conducting the necessary QA checks. However, it did not immediately realise that the tool would bunch together the addresses in the “To:” field which would then become visible to all their recipients.
To handle this, the tool was quickly rewritten to send single SendGrid API calls in batches of 1,000 addresses. Unfortunately, due to the time constraints, this was not put through our normal QA process. It was not immediately understood that the API call would create a literal concatenated “To:” field, leaking customer email addresses.
As soon as they realised their mistake, they immediately put a halt to the sending of the emails.
How is BitMEX Remedying The Blunder?
BitMEX, on the same day, had shared on its Twitter handle that users’ funds were safe.
Source- BitMEX Official
The exchange has also taken several other measures to ensure that users are not affected by the leak.

BitMEX’s support and security team is monitoring access patterns to identify suspicious activity on the platform after the leak. It has done human reviews of several accounts.
It has been doing human reviews of withdrawals. It has cancelled requests from accounts that did not have 2-factor authentication, were withdrawing to a previously unseen Bitcoin address, were submitted with a previously unseen IP addresses or were made after the email leak had occurred.
BitMEX has forced all users with balances and without 2FA devices to do a password reset.
BitMEX has added more agents to its support team to answer questions and address issues related to the incident.

The exchange has also warned their users about possible phishing attempts from hackers who will try to exploit the situation to their gain. Furthermore, it has requested all users to only observe instructions published on official BitMEX communication channels, enable 2FA for their account and use a password manager.
BitMEX’s carelessness in handling user data shows that the crypto industry is in dire need of standardised rules and regulations around handling customer data. Do you think that regulatory bodies across the world need to intervene in the operations of exchanges? Share your views with us in the comments below!
 
The post BitMEX Email Leak – BitMEX Explains How it Messed Up appeared first on Coingape.
Source: CoinGape

BitMEX Twitter Account Compromised, Exchange Assures Funds Safe

In a blog post published today, BitMEX announced that it will revamp its indices across all products to ensure that the reference prices “more closely reflect the market consensus price of underlying assets”. For the same purposes, the exchange sent an email to its users. However, instead of sending a Blind Carbon Copy (BCC), it sent a Carbon Copy (CC), thereby exposing the email addresses of thousands of its users. This further lead to speculations that the BitMEX account was hacked.
Was BitMEX Hacked?
This further lead to FUD that withdrawals were suspended and withdrawals have been suspended and the exchange has been hacked.  While BitMEX was quick to delete the tweets, the speculations were enough to make users anxious.
Source- Crypto Deleted Tweets
The trollers left no stone unturned to compromise BitMEX’s account and even posted that the users have the left chance to secure their Bitcoins and run.
Source- Crypto Deleted Tweets
The trollers further went on to say that withdrawals were suspended which led to much hype in the crypto community.
Source- Crypto Deleted Tweets
BitMEX Clears Claims of Exchange Hack
In another tweet by BitMEX’s official twitter handle, the exchange cleared the air about the hack. The exchange agreed on the fact that while the twitter account was compromised, the funds are safe.
Source- BitMEX Official
While the announcement brings in some relief, crypto twitter is still wary about the authenticity of the tweet. The announcement saw various comments, some which lambasted the exchange for lack of security measures, some questioned that how can they be sure if these were not the hackers. Some even said that there was no privacy on the exchange and all the talks of privacy were pure trash.
Source- BitMEX Official
Will BitMEX manage to gain trust among users? Will the exchange continue to maintain its position and popularity among crypto exchanges? Let us know, what you think in the comments below!
The post BitMEX Twitter Account Compromised, Exchange Assures Funds Safe appeared first on Coingape.
Source: CoinGape

BitMEX Reveals Some Users’ Email IDs Making Amateurish Mistake

Coinspeaker
BitMEX Reveals Some Users’ Email IDs Making Amateurish Mistake
Cryptocurrency derivatives exchange BitMEX today sent a mass email to its users with their email addresses in the “To” field, affecting their privacy.”
BitMEX Reveals Some Users’ Email IDs Making Amateurish Mistake

Continue reading at Coinspeaker
Source: CoinSpeaker

BitMEX Exposes the Email Addresses of Thousands of Users in its Email Announcement

In a blog post published today, BitMEX announced that it will revamp its indices across all products to ensure that the reference prices “more closely reflect the market consensus price of underlying assets”. While the news is a good one, it made a blunder in updating its users. 
BitMEX’s Blunder – It CC’ed the Email Instead of BCC’ing it
BitMEX, for updating its users about revamping its indices, sent an email to its users. However, instead of sending a Blind Carbon Copy (BCC), it sent a Carbon Copy (CC), thereby exposing the email addresses of thousands of its users.
Source: Twitter
The exchange acknowledged its mistake and also apologized to users. It also said that it is taking steps to understand the extent of the impact. Furthermore, it will be in touch with any users affected by the issue.
Our team have acted immediately to contain the issue and we are taking steps to understand the extent of the impact. Rest assured that we are doing everything we can to identify the root cause of the fault and we will be in touch with any users affected by the issue.
Update to Come Into Effect From November 22
The good news is that BitMEX is revamping its indices for offering fairer and more accurate reference prices to its users. The indices which will be updated are .BXBT, .BETH, .BETHXBT, .BXRPXBT, .BBCHXBT, .BLTCXBT, .BEOSXBT, .BADAXBT and .BTRXXBT, and the updates will come into effect from November 22. The new indices will be calculated with trading volume data across the constituent exchanges. This data will be gathered directly from the concerned exchanges using API connections.
To help users understand any differences before the changes applied to BitMEX’s indices on November 22, BitMEX will be publishing “BitMEX NEXT”. BitMEX NEXT is a family of indices that will run parallel to the existing indices and reflect the changes after the switchover. BitMEX NEXT, however, will not be used for valuation or settlement.
BitMEX, with its new indices, aims to achieve fairness, robustness, and accuracy in its reference prices. It believes that the new indices are going to be more representative because they will include data from more exchanges, have more constituents per index, and include higher weight from exchanges with higher trading volume.
The new indices will be calculated as “a weighted average of the Last Price for each constituent exchange”. Index prices will be updated every 5 seconds.
Old Indices Vs New Indices
Source: BitMEX
As can be seen in the table above, the existing indices do not include data from Gemini, Huobi and Itbit. The new indices include data from these exchanges as well, particularly Huobi, whose data will be included in calculating the reference prices of a majority of BitMEX’s products.
Source: BitMEX
In the new indices, Both Itbit and Gemini will contribute data to .BXBT_NEXT and .BETH_NEXT. Huobi will share data for .BETHXBT_NEXT, .BXRPXBT_NEXT, .BBCHXBT_NEXT, .BLTCXBT_NEXT, .BEOSXBT_NEXT, .BADAXBT_NEXT. and .BTRXXBT_NEXT.
Binance’s share in the .BETHXBT_NEXT, .BXRPXBT_NEXT, .BBCHXBT_NEXT, .BLTCXBT_NEXT, .BEOSXBT_NEXT, .BADAXBT_NEXT. and .BTRXXBT_NEXT indices has increased considerably, while Bitstamp will be sharing data for 3 more indices. While Bittrex’s weightage for .BADAXBT_NEXT has reduced significantly, it will be sharing data for 3 more indices. Coinbase will be sharing data for 4 more indices. Kraken and Poloniex’s weightage towards indices has reduced significantly. Also, Poloniex, whose data was earlier being used for calculating 5 indices, will now have a small weightage in only 2 indices.
 
The post BitMEX Exposes the Email Addresses of Thousands of Users in its Email Announcement appeared first on Coingape.
Source: CoinGape

XBT/USD Analysis: Bitcoin Hunting For A Buy Zone, Is It Time To Long For BitMEX Margin Trading?

Bitcoin settles in a consolidation range between $9,000 and $9,000 before the next breakout.
Investors get ready to buy Bitcoin at $8,800 while $8,400 is still in sight.

Bitcoin is pushing the current consolidation a notch higher above $9,100. $9,200 is the coming out as a key consolidation limit while $9,000 is the support limit. The diminishing volume means that buyers cannot ignite rapid movement north. Instead, this leaves Bitcoin with one viable move, to correct towards $8,800 (a possible buy zone) where more buy entries will be entered to give Bitcoin a boost towards $10,000. The same zone happens to be marked by the 50% Fib retracement level taken between the last swing high of $10,578 tom a swing low of $7,327.
XBT/USD 2-hour chart
XBT/USD price chart by Tradingview
In addition to that, the falling triangle pattern I explored yesterday is still in play. If Bitcoin manages to clear this resistance, we can expect an impressive rise above the resistance at $9,500, $9,700 respectively.
On the downside, if $8,800 support area gives in to selling pressure, the 100 Moving Average (MA) on the two-hour chart will try to stop the losses. The next support is observed at $8,400 while the recent support at $7,300 remains as the major support area.
Technically, Bitcoin has a short-term bullish bias. The Relative Strength Index (RSI) has reversed the trend towards the overbought after sliding to levels at 42. The return of the RSI above 70 would mark a growing bullish momentum and a subsequent increase in the price value.
According to the data on BitMEX, Bitcoin price index stands at $9,100.82. The product features a 24-hour trading volume of $2.9 billion which is significantly lower compared to volume on Thursday. BitMEX Bitcoin futures contract also has an open interest of $750 million.
Key Technical Levels
Index price: $9,100.82
Relative change: -60
Percentage change: -0.66%
Volume: Low
The post XBT/USD Analysis: Bitcoin Hunting For A Buy Zone, Is It Time To Long For BitMEX Margin Trading? appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC]: Analyst Calls for Bullish Target at $12,870, but are bulls in the Clear?

Bitcoin [BTC] price turned slightly bearish last day as price dipped below $9250 levels to test low at $8985. The 200-Day Moving Average ($9025) is currently acting as support. However, the 100-Day moving average ($9607) as resistance.
Trader Josh Rager tweeted on the price movements,
$BTC lower time frame range broke before daily open leading down to test $9k
Keep an eye on $8800, needs to hold and above 200DMA
Weekly/ monthly open still remain the place to break for continuation
According to him, the weekly open at $9547 and the previous month opening at $9593 remain critical for the continuation of the bullish break.
BTC/USD 1-Day Chart on Bitstamp (TradingView)
Sawcruhteez tweeted about the break above the falling wedge pattern on Bitcoin. The target of the move is $12,800. Nevertheless, in his Sawcruhteez Streams, he also listed the bearish arguments, which were quite significant.

The current $BTC market structure looks like a confirmed falling wedge, which would provide a target of $12,870. 🧐 pic.twitter.com/2xCRGlkEuu
— Financial Survivalism (@Sawcruhteez) October 31, 2019

The recent jump, though attributed to Xi Xinping, hasn’t seen rallying volumes; instead, it has fallen back to levels of consolidation.
Hence, while the historic move indicated buying into strength, Sawcruhteez suggested that the Ichimoku cloud and ADX indicators are still bearish. He also hinted at the possibility of whale-sized orders shifting the price, which could lack real strength in the market.
Bitcoin NVT Signal (Source: Woobull)
The NVT signal, which measures the ratio of value to the 90DMA transaction volume, also witnessed a spiked to 80 following the move. This could suggest over-valued conditions. However, the growth of the futures and derivatives market is having an increasing effect on Bitcoin’s price as well.
Bitcoin Futures Order Book Update
BitMEX recorded another consecutive day of long liquidation as the expectations of bulls failed to meet. About $19.6 million longs were liquidated. However, 4.25 million in shorts were settled, as well.
Bitcoin [BTC] Funding and Premium Index at BitMEX (TradingView)The funding and premium rate at the derivates exchanges also dipped as the uncertainty seems to have crept in the market. The basis on Okex, which was trading about $10, has also declined to $4. While still positive, the volume of buying interest seems to have cooled down.
Hence, while the price action is inclining towards a cool-down, a bullish break is on the cards.
Do bulls have the strength for another round of gains? Please share your views with us. 
The post Bitcoin [BTC]: Analyst Calls for Bullish Target at $12,870, but are bulls in the Clear? appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC] Futures Traders inclined to Longs, but $30 Million Liquidated at BitMEX

Bitcoin [BTC] price surprisingly surged by $2500 last week to claim $10,000. The reason for the rise is attributed to Xi Xinping’s announcement on blockchain innovation in China. While the decision has caused a stir in China, Bitcoin price movements have begun to threaten the bulls.
In the past six hours, about $30 million worth of futures long were liquidated at BitMEX. The data provided by Datamish also records more than $13 million in longs settled at Bitfinex as well.
Long (in Red) and Short (in Green) Liquidations at Bitfinex and BitMEX
Nevertheless, the ratio of long to short is heavily inclined towards the bulls. Currently, the long/short ratio on Bitfinex and Okex is 4.09 and 1.75, respectively. The increase in the respective long interest in both exchanges is about 10-20%. Moreover, the BTC basis at Okex is also positive, with a large magnitude of $10-14.
The BitMEX funding rate also flipped positive after the flash surge. It has been indicating a long inclination in the market for the past four days.
Bitcoin Futures Funding Rate at BitMEX (TradingView)
The top 100 traders’ sentiment at Okex is, however, at parity with the long/short ratio at 1.22.
Technical Standpoint and Expert Views
The price of Bitcoin [BTC] at 4: 45 hours UTC on 29th October 2019 is $9421. It is 2.3% lower on a daily scale. The 128-Day Moving Average is currently acting as resistance to the bulls.
Nevertheless, $9350-$9450 acted as support levels for Bitcoin before the break of the descending triangle. Hence, as it continues to hold support, the consolidation is likely to yield another positive move.
Crypto trader B.Biddles tweeted, noted that a bullish break above $9450 levels could begin another round of gains.

we flip this here blue dotted line, mama gonna open up that purse and buy herself some bitcoin pic.twitter.com/F0Tn8Zhva8
— b.biddles (@thalamu_) October 29, 2019

Derivatives trader and crypto analyst, Tone Vays, however, advised caution at the moment. According to him, while the charts are showing a bullish inclination, the possibility of a fake-out is not out of the woods yet.
The 200-day Moving average on the daily chart is at $8985. The price will need to hold above it for a continued positive move, a break below it could revive the bears again.
Do you think there is more steam left in this bullish run or further corrections are in order? Please share your analysis with us. 
The post Bitcoin [BTC] Futures Traders inclined to Longs, but $30 Million Liquidated at BitMEX appeared first on Coingape.
Source: CoinGape

Bitcoin’s price dictates BTC derivatives market and not vice-versa

The Futures market of crypto-assets has been on a rollercoaster ride in 2019. After a tremendous price rally during the April-June period, the Futures market exploded in terms of trading volume in July. BitMEX registered daily aggregated volumes of over $5 billion in July. Binance Futures platform was also launched in early September, and the […]
The post Bitcoin’s price dictates BTC derivatives market and not vice-versa appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin Derivatives Volume Has Grown 10 to 18 Times Bigger Than Bitcoin Spot Volume

As Bitcoin struggles to cross $8,000, derivatives trading is on an explosion. The amount of derivatives traded globally exceeds Bitcoin spot volume by 10 to 18 times says a Bloomberg report. 
Crypto Market Derivatives Continues To Flourish
The third quarter of 2019 saw the crypto market lose nearly $100 B in market cap and noted a sharp reduction of 42% in overall trading volume. Bitcoin lost 24% of its volume in the third quarter and even top -5 coins registered heavy losses with Litecoin shedding 54% of its value, going from $123 to $56.
Source- CoinGecko Q3 Report
Bitcoin price managed to surface around $10,000 until late September. It was followed by a sharp dip in Bitcoin’s price on the 24th of September. At press time, Bitcoin is trading at $7,495.
Source- CoinGecko Q3 Report
A surge has been noted in the crypto derivatives trading. While the high level of volatility in digital assets can be risky, high risk comes with high rewards.  CoinFLEX CEO Mark Lamb forecasted that the derivatives market will be 20 times the size of the underlying spot BTC market by the end of 2020.
“More and more hedge funds and more and more financial experts realize that there is an opportunity in this space. That means more volume going through the derivatives exchanges, and more liquidity coming into the overall ecosystem. So it is an interesting feedback loop.”
says Phillip Gillespie, CEO of B2C2 Japan, a cryptocurrency liquidity provider in Tokyo.
Leading the baton of derivatives trading Binance and BitMEX stand tall and offer futures contracts for Bitcoin and other crypto-assets with a leverage of more than 100 times. Subsequently, it has been a major factor in enthralling traders after Bitcoin’s decline since late 2017. Moreover, the thin liquidity is also a cause in the loss of interest as buy and hold Bitcoin whales control more than 33% of the total Bitcoin. Traders have been looking for new ways to profit as Bitcoin’s volatility has dropped to less than 2%. 
“That’s where the money is to be made in crypto. It’s the biggest casino ever.”
said Sid Shekhar, co-founder of London-based tracker TokenAnalyst.
“When trading with leverage, traders don’t have to tie up as much capital as you would trading spot. “This makes trading futures cheaper. This is the reason why futures trading in traditional markets is higher than spot trading.”
said Zhao Changpeng, CEO of Binance. 
A Look At The Volume of Futures
Binance Futures on the 15th of October recorded a volume of $700 M. Furthermore, Binance Futures recorded its 100K BTC on the same day.  
Source- Skew Markets
Needless to say, Binance Futures managed to climb the 3rd highest position. Moreover, in a span of 5 days, it managed to claim the 2nd spot in terms of 24-hour volume. 
Source- Twitter
Bakkt, which was being touted as a flop show also recorded an All-Time High(ATH) on its first monthiversary yesterday. It achieved 363 BTC on its Bitcoin Monthly Futures. 
Source- Bakkt Bot
Also, institutional interest on the long positions of CME BTC futures has risen by 450% in October. Furthermore, leading exchange OKEX makes up for 33.7% of the market share of crypto derivatives with a daily derivatives volume trading of $3.0 Bln. Also,  Andy Cheung, the exchange’s head of operations in Hong Kong, revealed that twice as many people have been trading derivatives than actual coins this year
Source- Skew Markets
Huobi was a  close second with a market share of  31.6% and 2.83 Bln. BitMEX perpetual BTC futures recorded a volume of $41.7 Bln. Interestingly, BTC futures products by Huobi and OKEx saw a healthy trading volume of $23.3 Bn and $17.4 Bn respectively.
BitMEX Has the Largest Share of Crypto Derivatives
Crypto futures started getting traction and went high gear in 2018. It was when BitMEX U.S. Commodity Futures Trading Commission, pioneered perpetual Bitcoin futures, which were easier for individual investors to understand than other derivatives
“BitMEX is probably at the center of the whole ecosystem right now,”
Shekhar said. 
He further said that BitMEX holds the largest share of crypto derivatives in the world and is estimated to be making at least $700,000 in fees from derivatives trading a day.
Will crypto derivatives continue to enjoy the same attention and volume in 2020? Let us know what do you think in the comments below!
The post Bitcoin Derivatives Volume Has Grown 10 to 18 Times Bigger Than Bitcoin Spot Volume appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC] Futures Market Update – Here’s What Price Indicators Project

Bitcoin [BTC] price held on to $7400 levels for the last two days after a steep drop on Tuesday. The increased volatility in price also increased the trading interest. The other parameters, such as long/short ratio and open interest, have also varied considerably in the last 24 hours.
Trading Volumes and Open Interest
The trading volumes on many exchanges saw a massive spike on 24th October as price broke below $7500. While Bakkt recorded a new ATH of $4.8 million on Wednesday. Reportedly, on Thursday, the volume is around $2.4 million.

∙ Today's volume so far: 324 BTC∙ Last traded price: $7,425.00∙ Trading day progress: 75% (if this continues: 100% equals to 432 BTC)
— Bakkt Volume Bot (@BakktBot) October 25, 2019

CME also witnessed a spike in trading volumes for futures contracts of both October and November. The October contracts are scheduled for expiry tomorrow. The open interest for Nov and Oct contracts is 471 and 1673, respectively.
The trading volumes on crypto Exchanges like Okex, BitMEX, and Bitfinex also saw a spike. However, the open interest has dropped on the exchanges.
Bitcoin Perpetual Swap and Futures Open Interest and Trading Volume (Okex)
Long/Short Ratio
The long-short ratio has varied as well in the past 24 hours. The overall ratio on spot exchanges like Okex and Bitfinex is long. With more than 70% long interest compared to short on Bitfinex, the bulls seem to have entered long perpetual contracts. Nonetheless, the change in the past two days has witnessed an overall drop.
Bitcoin Long/Short Ratio 1-Day Chart on Bitfinex (TradingView)
The market sentiment tuned highly bearish on Wednesday is now seeing a slight revival towards the bulls. Moreover, on Okex, the long-short ratio has spiked after a brief moment of panic. The proportion of long to short orders has increased from around 1.2 to 1.4.
 
Bitcoin Contracts Long/Short Ratio 1-Hour Chart (Okex Exchange)
The top 100 traders on Okex are predominantly long on Bitcoin, as well. It, however, saw a flash drop on 23rd October the short percentages increased to about 59% with longs at 40%. It soon revived back up to 60%, forming a deep trench.
Bitcoin [BTC] Basis
Bitcoin Basis accounts for the difference in the price of the perpetual swap and futures market from the spot market.
BTC basis on Okex flipped negative after the drop on 23rd October. It recorded a high of negative 18 points on Tuesday. Nevertheless, after consistently being negative, the basis is reaching equilibrium near zero. Currently, the Bitcoin basis on Okex is negative 0.45.
Funding Rates
Another metrics that closely relates to the BTC basis is funding rates. As a positive basis indicates buying interest, a positive funding rate reflects the same.
The funding rates on BitMEX have been negative for the more significant part of October. The funding rates spiked further negative post the plunge on Tuesday.
Bitcoin Contracts Funding Rate on BitMEX (TradingView)
The daily funding interest on Bitfinex also spiked to 0.03% for short trades compared to 0.02% for longs.
Where do you think the market is headed by looking at the order book? Please share your analysis with us. 
The post Bitcoin [BTC] Futures Market Update – Here’s What Price Indicators Project appeared first on Coingape.
Source: CoinGape

Coinbase, Poloniex and Other AA-Graded Crypto Exchanges Saw a 31% Plunge in Trading Volume in Sept – Report

Cryptocurrency information website CryptoCompare recently released its September report, and it has some surprising data about cryptocurrency trading in the month of September. According to the report, AA-rated exchanges, that is Coinbase, Poloniex, Bitstamp, bitFlyer, Liquid and itBit, have witnessed a 31.6% plunge in their trading in a month, while D and E grade exchanges have made over 71% of the spot trading volume.
Lower Tier Exchanges Getting More Trade Than the Top Tier Exchanges
As per the report, lower-tier exchanges have beat top tier exchanges at trading volume. AA-graded exchanges only made up 3% ($14.87 Bn) of the aggregate cryptocurrency trading volume in September, whereas A and B grade exchanges traded 14.3% )($71.98 Bn) and 4.7% ($4.7 Bn) of the total volume respectively. Grade D and E exchanges did have a trading volume of a whopping $347.2 Bn in September.
Coinsbit, LBank, and P2PB2B were among exchanges that enjoyed a relatively bigger trade size than many higher graded exchanges. Their average trade sizes stood at 8.7, 2.1 and 1.2 BTC respectively. In terms of trade count, the top tier exchanges scored higher. Grade D exchange Coinsbit only had an average of 2.526 trades per day, while Digifinex, Binance, OKEx and Bitstamp had an average of over 400K, 300K, 226K and 14K trades per day respectively.
Among fiat exchanges, Liquid was a clear winner with an average of 575K daily trades.
CME Rules Institutional BTC Products
When it came to institutional bitcoin products, CME was the top player with a total trading volume of $4.82 Bn. This figure, however, was 18.3% lower than its August figure of $5.9 Bn. Grayscale’s Bitcoin Trust (GBTC) also plunged 37.5% from its August figures to $713.6 MM in September.
Most Traded Derivative – BitMEX’s Perpetual BTC Futures
In the crypto derivatives segment, OKEx displayed exceptional performance with a daily derivatives volume trading of $3.0 Bn and a 33.7% market share. Huobi came second with a volume of 2.82Bn and a 31.6% market share and BitMEX third with a volume of $1.88 Bn and a market share of 21.1%. BitFlyer, Deribit and CryptoFacilities followed with the daily trading volume of $797 MM, $334 MM and $74 MM respectively.
BitMEX’s perpetual BTC futures were the most derivatives product by trading volume. A total of $41.7 Bn BitMEX perpetual BTC futures were traded in the month of September. BTC futures products by Huobi and OKEx with expiry on 27 September also saw a healthy trading volume of $23.3 Bn and $17.4 Bn respectively.
What do you think of the crypto market’s September performance? Share your views with us in the comments below!
The post Coinbase, Poloniex and Other AA-Graded Crypto Exchanges Saw a 31% Plunge in Trading Volume in Sept – Report appeared first on Coingape.
Source: CoinGape