Cryptocurrency Traders Place Over A Billion US Dollars Of Bet On BTC

By September 9, 2019 Bitcoin Business
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FILE PHOTO: Bitcoin buttons are seen displayed on the floor of the Consensus 2018 blockchain technology conference in New York City, New York, U.S., May 16, 2018.

Major advocates of Bitcoin (BTC) have been consistently upping the ante as they increase their engagement to the world's most popular digital asset by placing their bet on bitcoin through futures forex trading BitMEX.

The central trading tandem of BitMEX - the XBT (which represents BTC) versus the US currency (USD) - currently has an open interest of $1.06 billion.

The pair has advanced more than $250 million in less than 10 days alone, breaching the $1 billion barriers. Open interest means the total volume of "open" trade positions on any given currency pair.

The currency pair is also nearing an all-time peak of $1.23 billion - reached the first half of this year. BitMEX holds the biggest portion of trade in cryptocurrency futures and is thus perceived as a standard yardstick for the currency market's overall status. The XBT/BTC currency pair also comprises 91 percent of BitMEX's trade volume on a daily basis.

BitMEX is an electronic exchange and derivative currency trading platform owned and managed by HDR Global Trading Ltd, which is registered in Seychelles and has offices in major countries around the world.

While most prices across the floor have shifted their momentum slightly lower in the last 24 hours, BTC remains considerably steady within its consolidation level. At the same time, BTC has rallied nearly 9 percent but has yet to create a clear path.

This may all transform as the futures market makes a strong rebound. Open interest is a barometer for the total volume of outstanding contracts that have not been verified for a stable asset. These futures provide a good image of financial flow and trading activity.

For the case of BitMEX, it is the fourth time this year that that open interest has hit the $1 billion mark, which is an impressive signal.

The rise in open-interest on BitMEX in the past two quarters indicates that traders are not afraid to risk more of their investments on the result of BTC's price. However, there is no solid consensus yet on what direction they think BTC price will take.

During the last trading session, based on the total volume of both "sell" and "buy" orders on the market, it is divided 55 percent to 45 percent, moderately in favor of the currency market shifting upwards. Therefore, investors are still not quite sure.

Virtual currency trader 'Cantering Clark' stressed that generally, open-interest was nearly the biggest it has come to for 2019, thus despite its inconsistent price movement, bitcoin looks upbeat in gaining more momentum.

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