Bitcoin's Futures Landscape Heats Up
The open interest (OI) for Bitcoin futures has witnessed a remarkable surge, reaching 100,000 bitcoins (equivalent to $3.4 billion) on CME Group within a single day. This surge is not limited to CME Group alone; platforms like Binance, Deribit, Bitget, and Okx are also experiencing significant increases in open interest.
For those unfamiliar with the term, open interest (OI) in bitcoin futures refers to the level of market engagement and the total value of money or contracts currently in circulation. In simpler terms, it represents the sum of unsettled futures contracts that have not yet been cleared through counter-trades or deliveries. Recent data reveals a substantial growth in the open interest of bitcoin futures within a span of 48 hours.
The latest report from K33 Research highlights CME BTC futures' open interest surpassing 100,000 BTC, setting a new record. With this surge, CME now holds a 25% market share, closing in on Binance's leading position in the futures sector with just a 4% difference. Additionally, there has been a notable increase in CME's options volume and open interest related to BTC futures on October 23.
Deribit is not far behind, as both its futures and options have shown significant growth. The open interest for bitcoin options on the platform crossed the $12 billion mark, while the open interest for bitcoin futures approached the billion-dollar mark. Open interest provides valuable insights into the overall activity and capital flow within the futures market. An increase in open interest typically indicates heightened market enthusiasm, while a decrease may suggest waning interest.
On October 23, Binance reported a staggering $12.08 billion in open interest for bitcoin futures. Other major players in the futures domain include Bitget, Okx, Gate.io, Kucoin, and Bitmex. Furthermore, Dydx and Crypto.com have also witnessed spikes in open interest recently. This newfound interest can be largely attributed to the potential approval of a spot bitcoin exchange-traded fund.
The recent legal victory for Grayscale and Blackrock's preparations for an ETF are seen by many as favorable signs for the future.
What are your thoughts on the recent surge in open interest for bitcoin futures? Feel free to share your opinions and insights on this matter in the comments section below.
Frequently Asked Questions
How much of your portfolio should be in precious metals?
First, let's define precious metals to answer the question. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Gold is today the most popular precious metal.
There are also many other precious metals such as platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. They do not always move in the same direction. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They are more rare, so they become more expensive and less valuable.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
Which precious metals are best to invest in retirement?
Silver and gold are two of the most valuable precious metals. They are both simple to purchase and sell, and they have been around for a long time. These are great options to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It's stable and safe. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has always been popular among investors. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium is another precious metal that is becoming increasingly popular. Like gold and silver, it's very durable and resistant to corrosion. It's however much more costly than any of its counterparts.
Rhodium: Rhodium is used in catalytic converters. It is also used for jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It is also cheaper. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Can the government seize your gold?
Your gold is yours and the government cannot take it. You worked hard to earn it. It belongs entirely to you. However, there may be some exceptions to this rule. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Also, if you owe taxes to the IRS, you can lose your precious metals. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Should You Buy or Sell Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts believe that this could change very soon. According to them, gold prices could soar if there is another financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some things you should consider when considering gold investing.
- Consider whether you will actually need the money that you are saving for retirement. It's possible to save for retirement without putting your savings into gold. The added protection that gold provides when you retire is a good option.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each one offers different levels security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. Your gold coins may be lost and you might never get them back.
Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads. Example. And Risk Metrics
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
Three ways to invest in gold for retirement
It is crucial to understand how you can incorporate gold into your retirement plans. There are several options to invest in precious metals if your employer has a 401k. You might also consider investing in gold outside your workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are the three rules to follow if you decide to invest in gold.
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, instead, transfer cash to your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. Physical gold coins are easier to sell than certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify Your Portfolio – Never put all of your eggs in one basket. This means that you should diversify your wealth by investing in different assets. This can reduce market volatility and help you be more flexible.
By: Jamie Redman
Title: Bitcoin Futures Open Interest Surges as Market Enthusiasm and ETF Anticipation Rise
Sourced From: news.bitcoin.com/bitcoin-futures-open-interest-skyrockets-amid-rising-market-enthusiasm-and-etf-anticipation/
Published Date: Tue, 24 Oct 2023 18:30:11 +0000