The combined value of all global Bitcoin futures hit $ 14 billion for the first time on February 6, according to Skew.
Bitcoins for the future
The total value of all Bitcoin (BTC) futures contracts in the global cryptocurrency market reached a new significant level of $ 14 billion on February 6, according to data analytical resource Skew.
The new record was set following the recent rally in bitcoin towards the $ 41,000 mark. Binance, the largest exchange by trading volume, accounted for the most BTC futures. Almost half of all unclosed Bitcoin futures contracts are traded on this site.
Binance also became the leader in terms of open interest in BTC derivatives. The total value of such contracts was $ 2.33 billion.
The second place after Binance was occupied by the OKEx exchange with a result of $ 2.21 billion. The third place was taken by the Chicago Mercantile Exchange (CME) with an indicator of $ 2.05 billion.
Recall that a futures contract gives its owner the right to buy the underlying asset at a predetermined price at a certain point in the future. Unlike option contracts, the holder of the contract is obliged to execute it, no matter how the market situation develops.
Global #bitcoin futures OI hits $14b for the first time. pic.twitter.com/l9UeeSguu7
— unfolded. (@cryptounfolded) February 7, 2021
On the horizon – $ 1.5 trillion
The optimism of futures traders is quite understandable if we remember that the past week was very successful for the cryptocurrency market. Thus, the Ethereum (ETH) rate has moved the historical maximum by $ 1,752.05, having risen in price since the beginning of the week by 18 +%.
In addition, the market capitalization of ETH for the first time in its history rose to $ 200 billion.This allowed the second cryptocurrency in the world to bypass such traditional heavyweights of Wall Street as Wells Fargo, Morgan Stanley and American Express.
The total capitalization of BTC and ETH is now approaching $ 900 billion, which is equal to 75% of the total cryptocurrency market capitalization ($ 1.17 trillion). Some participants in the crypto space have already started talking about the fact that a new milestone of $ 1.5 trillion is not far off.
It took a little over 10 years to reach 1 Trillion. It won’t take another 10 years to double up. My guess; <1.5
Current Crypto Market Cap
$1 Trillion– Kɾαȥé Míƙҽ (@ KraZeMike83) January 18, 2021
Such predictions may well come true if cryptocurrency derivatives continue to gain popularity. Thus, the total trading volume of all derivatives on Binance has already reached a record value of $ 40 billion. These volumes include 147 different crypto assets.
Moreover, new derivative products are constantly emerging. So, recently the BitMEX exchange announced the launch of an unlimited swap on Dogecoin (DOGE) with a leverage of 20x.
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