The Chicago Mercantile Exchange (CME) group experienced record third-quarter performance relative to thecrypto-futures-and-options-trading-93CH-3218557″ target=”_blank”> bitcoin and ethereum futures trading and options contracts. The increase in trading activity serves as evidence of greater participation by institutional investors in the cryptocurrency derivatives market.
The main focus of open interest on offshore exchanges revolves around perpetual futures, which maintain price parity using the funding rate method and lack expiration dates. These contracts dwarf the standard bitcoin futures on the CME, where a five btc contract is the norm, while a micro contract represents one tenth of bitcoin.
bitcoin futures set new records
The CME, boosted by open interest of $3.58 billion on Oct. 30, rose two spots ahead in the rankings of regulated derivatives exchanges. With $2.6 billion and $1.78 billion in open interest, the CME outperformed Bybit and OKX, falling slightly behind Binance’s $3.9 billion.
<img class="aligncenter wp-image-262679 size-full" src="https://technicalterrence.com/wp-content/uploads/2023/11/Bitcoin-futures-and-options-soar-CME-Groups-third-quarter-breaks.png" alt="crypto” srcset=”https://technicalterrence.com/wp-content/uploads/2023/11/Bitcoin-futures-and-options-soar-CME-Groups-third-quarter-breaks.png 953w, https://bitcoinist.com/wp-content/uploads/2023/11/a-15-640×250.png 640w, https://bitcoinist.com/wp-content/uploads/2023/11/a-15-768×301.png 768w, https://bitcoinist.com/wp-content/uploads/2023/11/a-15-750×294.png 750w” />
In the third quarter, Ether options contracts saw a substantial 75% increase. Open interest (OI) for Ether futures and options contracts increased 22% from the previous quarter, reflecting the total number of outstanding contracts held by market participants at the end of each trading day.
This quarter witnessed a notable achievement in btc futures. crypto-derivatives-hits-record/” target=”_blank”>setting a new record with an average of 15,800 contracts, which represents an increase of 11% compared to the previous quarter.
btc Open Interest: A Key Metric for Market Sentiment and Volatility
Open interest is the number of futures and options contracts held by traders and investors at the end of each trading day. It is an important indicator of bitcoin futures market participation and interest. Open interest shows the number of buyers and sellers of bitcoin futures and options due to unsettled contracts. bitcoin open interest can indicate market sentiment and price changes. As more traders establish positions, open interest increases, suggesting participation and volatility.
Conversely, a decrease in open interest may indicate a lack of trader commitment or consensus in the market, stabilizing or decreasing market volatility. bitcoin open interest, price changes, and trading volumes can reveal market trends and the mood of traders in the crypto derivatives market.
bitcoin and Ether soar throughout 2023
bitcoin and Ether, the top cryptocurrencies by market value, experienced a temporary period of market instability in the third quarter, resulting in a drop of 12% and 15% from their high values for the year, respectively. However, both cryptocurrencies have grown significantly throughout the year. The price of btc so far this year is up more than 60%, while Ether gained only 38%.
The CME has recently achieved abitcoin-futures-trading” target=”_blank”> record level of open interest for your bitcoin futures
The milestone not only indicates a growing market appetite for cryptocurrency-based financial products, but also underscores the increased acceptance and maturation of bitcoin within the traditional financial landscape, solidifying its position as a legitimate and integral part of mainstream financial discussions. .
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