Data shows Bitcoin price drops days after BTC futures open interest hits $1B
Cointelegraph
Published Nov 27, 2020 06:52PM ET
Updated Nov 28, 2020 09:40PM ET
There was a time when BitMEX derivatives exchange reigned sovereign over other exchanges, and the company effectively held a 50% market share until July 2019. For this reason, traders kept a close eye on every indicator connected to BitMEX, including its funding rate, open interest, and basis.
Open interest measures the total number of contracts held by market participants. As the figure rises higher, so does the potential size of liquidations. On Aug. 2, a $1,400 crash happened as $1 billion in futures contracts were forcefully closed due to insufficient margins.
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Written By: Cointelegraph
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