The bitcoin futures market, in one fell swoop, has the leader board flipped on its head, not just to see a shuffle, but to witness amplitude changes vanishing in one and appearing in another.US

Binance and BitMex, one relatively recent entrant in the derivative market, and the other a legend of the industry are among the most prominent exchanges. While legacies lead to this categorization, current performance points to the other.

Bitcoin Futures all-time high volume

Based on the most recent data from skew markets, Binance has seen a considerable rise in its open interest Bitcoin Futures, rising higher than most of its previous peaks and undoing all the missed positions shed since it began its bullish campaign in march 2020.

The aggregated Bitcoin Futures Between February 10, 2020 – March 12, 2020, Open value on Binance fell from USD257 million to less than USD80 million due to the flood of liquidations that reduced Bitcoin’s price from more than USD ten thousand to less than USD four thousand. From then on, though, the tide has been changing.

From the 12th of March OI grew from USD73 million to USD252 million, a 245 percent rise in less than two months, and even at press time the OI soared beyond the previous peak, the highest open interest on Binance ever since the launch in September 2019, to USD270 million; it is not a general theme across the derivatives market, even while this high is unprecedented for Binance.

Not a common phenomenon in the derivatives industry

BitMex, the second-highest OI in the overall sector, has not yet seen a steady rise in its impressive levels. Even though this high is unusual for Binance, it is not a common phenomenon in the derivatives industry.

Following the plummet, on March 12, 2020, its available value accrued to USD593 million, and at press time it amounted to USD586 million. During that time, the highest open interest accrued by the Seychelles-based exchange amounts to USD636 million reported on April 21, 2020.

Observing from a broader perspective, the rise in Binance’s volumes and the decrease in BitMEX, mirrored in open interest, also shows a change in pricing for derivative traders. Despite the colossal market instability and the triple-digit leverage provided by BitMEX. It was unable to reel in significant volumes compared to its regular limit, whereas rival exchanges gradually regain their losing positions and raise their volumes, with Binance leading the way.

This post was last modified on May 3, 2020 11:04 pm