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Tag: open interest

  • Dogecoin Open Interest Crashes 50% From October Highs, Volume Is Worse, What’s Going On?

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    Dogecoin (DOGE) is facing a steep market cooldown after weeks of heightened trading activity in early October. Data from CoinGlass shows that both Open Interest (OI) and trading volume for DOGE futures have crashed, indicating a sharp decline in the meme coin’s momentum. The latest figures reveal a significant pullback in derivatives activity and spot market participation, suggesting that traders may be retreating from speculative positions as volatility eases. 

    Dogecoin Open Interest Crashes Over 60%

    Dogecoin’s Open Interest has plunged dramatically from its October highs, reflecting a rapid exodus of leveraged traders from the market. According to CoinGlass, total exchange DOGE futures Open Interest has fallen over 62% from a peak of $5.03 billion on October 7 to $1.88 billion on October 28. This represents a drop to approximately 9.41 billion DOGE, valued at $ 0.20 per token.

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    Despite the decline in Open Interest, Binance, BitMEX, and Bybit continue to lead as the top exchanges with the highest Dogecoin futures activity. Still, the downturn has been widespread across exchanges. Kucoin recorded the largest drop in recent hours at 3.1%, followed closely by Bitget, which saw a 2.27% decline. Over the last 24 hours, Bitunix recorded the steepest drop in Open Interest, down 15.86%, while Crypto.com saw a 7.36% reduction. 

    Source: Chart from Coinglass

    Even Binance, which consistently leads Dogecoin futures trading, has seen a notable pullback. CoinGlass reports that the exchange’s Open Interest peaked at $964.7 million on October 7, marking a monthly high. Since then, it has fallen to $380.29 million (1.9 billion DOGE), representing a staggering 60.6% crash in just over three weeks.

    Dogecoin Sees Even Worse Decline In Volume

    Trading volume for Dogecoin has mirrored the collapse in Open Interest. CoinGlass data shows that Dogecoin’s futures volume heatmap across major crypto exchanges is in the red zone. Total trading volume had spiked to $20.45 billion on October 11, following the devastating crypto flash crash on October 10, but has since plummeted to $5.31 billion as of October 28. This represents a whopping 74% decline.

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    On individual exchanges, Binance’s DOGE trading volume dropped by 9.35% in the past 24 hours, while OKX saw a 13.69% decline. CoinEx recorded the largest volume decrease at 26.1%, followed by Gate.io at 23.94%. Popular exchanges like Bitget, Kucoin, and Bitunix also reported varying declines of 4.96%, 20.37% and 13.16%, respectively, as overall market liquidity thinned. 

    However, a few exchanges bucked the downward trend, recording slight gains. dYdX saw its DOGE volume surge by 167.61%, HTX increased by 49.93%, and Hyperliquid rose by 23.88%. Bybit and MEXC also recorded modest gains of 24.98% and 1.88%, respectively. 

    Alongside its decline in trading volume, CoinGlass notes that Dogecoin’s price performance has slipped. The meme coin is currently trading at $0.20, down 13.19% over the past 30 days and 2.86% in the last 24 hours.

    Dogecoin
    DOGE trading at $0.19 on the 1D chart | Source: DOGEUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

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    Scott Matherson

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  • ‘Money Will Pour In’ – CEO Predicts Bitcoin Will Explode To $180K

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    They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

    Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

    Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

    So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

    Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

    Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

    Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

    Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

    So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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    Christian Encila

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  • Demand For XRP On CME Explodes As Reports Show Over $18 Billion

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    Demand for XRP on the CME derivatives exchange continues to rise, providing a bullish outlook for the altcoin. This comes ahead of the potential approval of the XRP ETFs, which could further spark institutional demand for XRP. 

    CME XRP Futures Hit New Milestone

    In an X post, the CME group announced that it has hit its four-month milestone for XRP futures, with a notional trading volume of $18.3 billion, 6 billion XRP traded, and 397,000 contracts traded. This again highlights the demand for the altcoin, with the derivatives exchange previously stating that the altcoin’s futures products have shown demand from both institutional and retail participants. 

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    Notably, the CME XRP futures crossed $1 billion in open interest (OI) last month, with the altcoin becoming the fastest-ever contract to do so, having hit the mark in just three months. 

    Amid the demand for the altcoin on the derivatives exchange, CME has announced plans to launch options trading on the XRP futures on October 13. 

    This is expected to further boost the demand on the CME exchange, which is a positive for the altcoin. This new milestone for XRP futures comes just ahead of the potential launch of XRP ETFs under the 33 Act, which will also elevate institutional interest in the altcoin. Fund issuers are expected to file amendments for their respective funds as soon as the end of this week. 

    This comes amid the SEC’s approval of the generic listing standards, which could enable these XRP ETFs to launch earlier. If that doesn’t happen, the focus will shift to Grayscale’s October 18 deadline, which is the first final deadline among all seven XRP filings. The commission could approve these funds simultaneously, just as it did with the Bitcoin and Ethereum ETFs. 

    Massive Demand Expected For The ETFs

    It is worth mentioning that market expert Nate Geraci had previously alluded to the success of the CME XRP futures as one of the reasons he believes people are underestimating the demand the spot XRP ETFs may record. He also noted at the time that there was already over $800 million in futures-based XRP ETFs. 

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    In another X post, Geraci doubled down on his statement that people are “severely” underestimating the investor demand for the spot XRP ETFs. He noted how a similar thing happened with the spot Bitcoin and Ethereum ETFs, which have so far exceeded expectations. 

    Canary Capital CEO Steven McClurg also has high expectations for the XRP ETFs, predicting that they could record up to $5 billion in inflows in their first month. He also believes that they could outperform the Ethereum ETFs in the process. 

    At the time of writing, the altcoin price is trading at around $2.75, down over 3% in the last 24 hours, according to data from CoinMarketCap.

    XRP trading at $2.76 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

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    Scott Matherson

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  • More Pain For Bitcoin? Open Interest Surpasses $40 Billion As Longs Crowd In

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    After hitting a new all-time high (ATH) of $124,474 on Binance on August 13, Bitcoin (BTC) has tumbled toward $113,000, with the next major support zone around $110,000. Analysts warn that more downside could still be ahead for the top cryptocurrency.

    Bitcoin To Fall More? Crowded Long Trade Gives Hint

    According to a CryptoQuant Quicktake post by contributor XWIN Research Japan, Bitcoin open interest across all exchanges has surged past $40 billion, nearing ATH territory. This rise shows both whales and short-term traders are piling into leveraged positions.

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    The chart below highlights the recent spike in BTC open interest, now hovering at $40.6 billion. Compared to August 2024 levels of $15 billion, open interest has grown by more than 150%.

    Bitcoin open interest has surged past $6 billion | Source: CryptoQuant

    The CryptoQuant contributor added that despite this surge, the funding rate has remained positive, showing a strong long bias. While this reflects market optimism, it also signals a crowded trade, with most participants betting on further BTC appreciation.

    funding rates
    Bitcoin funding rates across all exchanges continue to be positive since the beginning of August | Source: CryptoQuant

    As a result, the risk of a long squeeze – forced liquidations of long positions due to aggressive leverage – has risen. XWIN Research Japan explained in their analysis:

    A sudden price drop can trigger a cascade of forced selling, amplifying volatility. In other words, Bitcoin’s short-term moves remain at the mercy of speculative flows.

    BTC Fund Holding By Institutions Rises

    Despite speculative froth from excessive leverage in the market, BTC fund holdings by Bitcoin exchange-traded funds (ETFs) and institutional investors continue to surge, exceeding 1.3 million according to latest data.

    fund
    Bitcoin fund holdings currently hover around 1.3 million | Source: CryptoQuant

    Spot ETFs and corporate treasuries absorbing BTC provides the digital asset a structural bid that steadily reduces its available supply. According to data from SoSoValue, US-based spot Bitcoin ETFs currently hold $146 billion in net assets – representing 6.47% of BTC’s market cap.

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    That said, this week alone has seen more than $645 million in outflows from spot Bitcoin ETFs, following two consecutive weeks of inflows totaling nearly $800 million. Among the ETFs, BlackRock’s IBIT leads with $84.78 billion in net assets as of August 19.

    Still, not all signals are bearish. For instance, while BTC slipped below $115,000, its spot trading volume surged past $6 billion, giving bulls hope for a potential rebound.

    Similarly, technical analyst AO recently suggested that BTC could be mirroring gold’s trajectory, with an ambitious target of $600,000 by early 2026. At press time, BTC trades at $113,845, down 1.5% in the past 24 hours.

    bitcoin
    Bitcoin trades at $113,845 on the daily chart | Source: BTCUSDT on TradingView.com

    Featured image from Unsplash, charts from CryptoQuant and TradingView.com

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    Ash Tiwari

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  • XRP Open Interest Climbs To $1 Billion: What’s Driving Interest In The Token?

    XRP Open Interest Climbs To $1 Billion: What’s Driving Interest In The Token?

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    Este artículo también está disponible en español.

    Ripple’s XRP token amassed close to $1 billion in open interest over the weekend, while its price hovers around $0.61 at press time, data from CoinGlass shows.

    What’s Different About XRP Price Action?

    While the top two cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), have been down 1.5% and 2.3% over the past week, XRP has been up 4.1% during the same period. Several factors could explain XRP’s counter-trend price action.

    For example, digital asset manager Grayscale Investments recently launched a closed-end XRP Trust in the US, enabling institutional investors to gain exposure to one of the top ten cryptocurrencies by reported market cap.

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    Grayscale’s Trust surged by more than 11% within a week, hinting at strong institutional demand for the seventh largest crypto-asset. 

    The launch of the Trust has also fuelled speculations about the potential approval of an XRP exchange-traded fund (ETF) shortly. If the US Securities and Exchange Commission (SEC) approves an XRP-based ETF, it would become only the third digital asset with its own ETF.

    Another key development in the Ripple ecosystem is the anticipated launch of its USD-pegged stablecoin, RLUSD. Currently, crypto analysts on X are closely watching the stablecoin in private beta testing on both the XRP and Ethereum networks.

    According to a recent update, 480,000 RLUSD was minted at RLUSD Treasury, signaling active development of the stablecoin before its integration into Ripple’s services, including its cross-border payment products. The stablecoin can also be used in decentralized finance (DeFi) protocols across blockchains.

    Implications Of Rising Open Interest

    Data from CoinGlass indicates that open interest in XRP surged to more $1 billion over the weekend before it tumbled to roughly $945 billion at press time. Spot trading volume in the last 24 hours stands slightly above $2 billion.

    Source: CoinGlass.com

    A rise in open interest typically indicates increased market activity, suggesting that more contracts are being opened. This may signal expectations of a price move in either direction, depending on the prevailing market sentiment. Notably, XRP’s open interest was last recorded around the $1 billion mark in March 2024.

    As for price action, crypto analysts have divided opinions on XRP. Ripple Labs’ recent legal victory over the SEC provided optimism for the altcoin bulls, with one analyst predicting that if the token overcomes key resistance levels, it could surge to between $16 and $20.

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    Meanwhile, another crypto analyst, Carl Runfelt, highlighted a multi-year bullish triangle pattern on the token’s chart. He noted that if XRP breaks the pattern and goes parabolic, it could rise by more than 200% within weeks.

    On the contrary, XRP’s inability to break through the $0.60 resistance level decisively could lead the token to retest the $0.55 support level. XRP trades at $0.61 at press time, down 1.6% in the past 24 hours.

    XRP
    XRP trades at $0.61 on the daily chart | Source: XRPUSDT on TradingView.com

    Featured image from Pixabay, charts from CoinGlass.com and Tradingview.com

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    Ash Tiwari

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  • Dogecoin Open Interest Surges To Record $1.49 Billion

    Dogecoin Open Interest Surges To Record $1.49 Billion

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    The Dogecoin open interest (OI) is surging after a week of remarkable price action. The meme coin which rose over 100% has continued to enjoy the attention of investors and traders alike, leading its open interest to reach a new all-time high.

    Dogecoin Open Interest Taps Record $1.49 Billion

    Data from Coinglass shows that there was an exponential growth in the Dogecoin open interest in the first five days of March. The open interest had closed out the month of February $870.22 million. However, only five days later, Dogecoin’s OI has risen to $1.49 billion. This rapid increase in less than one week translates to an over 70% increase in the open interest, reaching a brand new all-time high.

    The increase did not come out of nowhere, as the DOGE price had begun to recover during this time. It closed out February at a price of $0.09, but by March 5, the price has already seen an 100% increase, briefly hitting $0.2 before correcting back downward to its current price of $0.18.

    The open interest represents the interest in the meme coin as it is a total of all of the open derivatives positions in DOGE at any given time. This means that crypto traders are betting more on the price of Dogecoin and taking short and long positions in DOGE at an unprecedented rate.

    Three exchanges currently control the vast majority of the DOGE OI, namely ByBit, Binance, and OKX. ByBit takes the lead, commanding $584.13 million of 3.25 billion DOGE OI. Binance takes the second position with $511.22 million or 2.85 billion DOGE, and OKX comes in third with $194.17 million or 1.08 billion DOGE.

    DOGE Traders Caught In Tug-Of-War

    Presently, the Dogecoin price seems undecided on where it is headed next, which has led to almost equal liquidations across the camps of bulls and bears. As mentioned above, the DOGE price had briefly touched $0.2, leading to liquidations across shorter. However, its downward correction has been just as detrimental to long traders.

    Coinglass data shows that in the last 24 hours, DOGE traders have lost $33.92 million. Interestingly, long traders have actually lost more during this time as they account for $17.44 million in liquidations. While short traders have lost $16.32 million during the same time period.

    On the shorter time frame, long traders are still suffering more losses with $2.26 million lost in the last four hours compared to $453,280 in short positions. However, while this shows bulls are taking a beating, it is also proof that bullish sentiment among traders when it comes to the DOGE price remains strong.

    At the time of writing, DOGE’s price is siting $0.18 with a 7.49% increase in the last 24 hours, and an 85.98% increase in the last week.

    DOGE price at $0.18 | Source: DOGEUSD on Tradingview.com

    Featured image from Markets Insider, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Bitcoin Bullish Surge Ahead: Deribit Predicts Major Price Leap In Early 2024

    Bitcoin Bullish Surge Ahead: Deribit Predicts Major Price Leap In Early 2024

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    A recent analysis by Deribit, a leading derivatives exchange, suggests a bullish sentiment for Bitcoin as we approach early 2024. This optimism is rooted in the current Bitcoin put-call options ratio, a critical option market metric.

    Deribit’s Insight: Bitcoin Calls Outpace Puts Signaling Market Confidence

    Notably, options are financial instruments that give traders the right, but not the obligation, to buy (call options) or sell (put options) an underlying asset at a specified price within a set time frame. The put-call ratio is used in options trading to measure market sentiment.

    A put option signifies a bet on the price of an asset falling, while a call option represents a wager on its rise. A lower put-call ratio indicates that more traders are betting on the asset’s price increasing rather than decreasing.

    Deribit’s analysis shows an increasing trend in the number of call options outstripping put options in Bitcoin’s options market. Luuk Strijers, Chief Commercial Officer at Deribit, highlighted that the put-call ratio for Bitcoin has consistently hovered “between 0.4 and 0.5” throughout the year.

    This trend is particularly noticeable for options expiring in March and June 2024, suggesting that investors are increasingly using call options to position for a potential appreciation in Bitcoin’s value during this period.

    The put-call options ratio falling below one is a bullish market indicator, as it shows that call volume, or bets on the price increase, surpasses the put volume, which are bets on the price decrease. According to Deribt, Bitcoin’s put-call ratio currently stands at 0.42, as of today.

    A Surge In Crypto Derivatives Activity

    Meanwhile, November has seen significant activity in the crypto derivatives market, as noted by Strijers. The Deribit executive attributes this increased market activity to higher levels of “implied volatility (DVOL),” which have spurred “opportunities and overall market volumes.”

    Bitcoin open interest by expiration. | Source: Deribit

    The expiration dates of the upcoming options, especially the significant one on December 29, are expected to maintain the heightened interest and activity in the market. With $5.7 billion in Bitcoin options and $2.7 billion in Ethereum options set to expire at the end of December, the market is poised for notable movements.

    Bitcoin open interest based on previous day.
    Bitcoin open interest based on the previous day. | Source: Deribit

    Bitcoin maintains its upward momentum, advancing by 1.8% over the past 24 hours. With Bitcoin currently trading at $38,344, the asset has sustained the gains achieved at the close of the previous month.

    Bitcoin’s trading volume significantly reflects heightened market activity, suggesting ongoing buying pressure. In just the last day, trading volumes have surged from around $11 billion earlier in the week to over $21 billion, a noteworthy indication of increasing investor engagement.

    Bitcoin (BTC) price chart on TradingView
    Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    Featured image from Unsplash, Chart from TradingView

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    Samuel Edyme

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  • AVAX Open Interest Climbs 10.4% To $224 Million, Is $30 Possible?

    AVAX Open Interest Climbs 10.4% To $224 Million, Is $30 Possible?

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    The open interest for AVAX has been on a consistent rise over the last month, carrying the price of the altcoin along with it. The result of this continuous climb is the fact that the open interest has now surged to May 2022 levels, a development that could spell a massive rally for the price.

    AVAX Open Interest Surge To $224 Million

    According to data from Coinglass, the AVAX open interest has now climbed to $224 million. The website shows that there was an over 10% increase in the open interest in a 24-hour period which brought the total open interest above 10.04 million AVAX.

    Binance actually commands almost half of the total of this open interest at 4.48 million AVAX worth a little over $100 million. This suggests that a good portion of the demand is coming from the crypto exchange. The total open interest also saw a 9.94% increase in the 24 hour period.

    Source: CoinGlass

    ByBit exchange accounts for the second-largest open interest at 2.04 million AVAX worth $46.09 million. BingX comes in third place with 1.24 million AVAX worth $27.59. But none of these exchanges account for the largest jump in the last day.

    The largest jump in open interest was recorded on the Bitmex exchange as it rose 17.78% to bring the crypto exchange’s total open interest to 55,340 AVAX with $1.53 million. Altogether, the open interest in the altcoin has risen from $82.8 million on October 20 to $224 million on November 20, meaning that the open interest has grown 170% in one month.

    AVAX price chart from Tradingview.com (Open interest)

    Token price holds above $22 | Source: AVAXUSD on Tradingview.com

    Can Price Cross $30?

    The last time that the AVAX open interest was this high, the price was trading much higher which opens the possibility of a rally above $30. As Coinglass data shows, the last time that the open interest crossed $220 million was in May 2022 when the price was still trading above $50.

    Also, taking a look at AVAX’s historical performance, it shows that whenever the open interest has risen quickly, the price tends to follow suit. This was the case back in August 2021 when the open interest went from $14.53 million to $123.5 million, and the AVAX price rose accordingly from $19.15 to $55.

    If the same trend were to take place here, then $30 may only be a starting point for the AVAX price. Following all historical performances, the current volume of open interest puts the AVAX fair price at around $40, meaning the altcoin could be trading well below its fair value.

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    Best Owie

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  • Bitcoin Open Interest Tops 19-Month High: Historical Data Shows What To Expect

    Bitcoin Open Interest Tops 19-Month High: Historical Data Shows What To Expect

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    The Bitcoin open interest can often be an indication of where the BTC price might be headed next depending on whether or not the metric is rising or falling. This time around, the Bitcoin open interest has risen drastically, hitting 19-month highs in the process. Using historical data, it is possible to extrapolate what this means for the crypto’s price, especially as investors remain very bullish.

    Bitcoin Open Interest Surges To $17.04 Billion

    In an interesting turn of events, the Bitcoin open interest has been rising quickly across various exchanges. In the last 24 hours alone, this metric rose by a cumulative 7.89% across all exchanges in the space, bringing the total open interest to 454,150 BTC worth a staggering $17.04 billion.

    For now, most of the Bitcoin open interest is concentrated across the CME, Binance, and ByBit exchanges. But perhaps what is even more interesting is that these open interest levels represent a 19-month high.

    Source: CoinGlass

    According to the data presented on the CoinGlass website, the last time that the Bitcoin open interest moved in this fashion and to this high was back in March 2022, before the historical Terra LUNA crash that sent the market into a prolonged bear market stretch.

    This means that the last time that the Bitcoin open interest rose this much was during a time when investors were still very much in the throes of bull run euphoria. As such, the historical performance of the BTC price back then in relation to the open interest could serve as a guide to what might happen to the digital asset’s price next.

    BTC price chart from Tradingview.com (Bitcoin open interest)

    BTC price finds support at $37,400 | Source: BTCUSD on Tradingview.com

    Historical Data Says BTC Price Will Surge

    Similar to the current trend, the Bitcoin open interest had surged from around 38,000 BTC to over 44,000 BTC in the space of a month, and the BTC price followed quickly. This trend saw the price rise in March 2022 from $38,700 to over $47,000 before the month was over.

    Going by this historical performance and assuming Bitcoin sticks to this trend, the rally may be far from over. The BTC price is also sitting at a similar price point at $37,500 and a similar surge could bring its price toward $45,000 before the month is over.

    However, there is also the possibility that the open interest could peak at this level and begin to decline. Once this happens, then in the same fashion as in April 2022, the BTC price could begin to decline as the open interest drops. A similar crash would send the price back down toward $27,000.

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    Best Owie

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