Tuesday 8 December 2020 12:06 pm


Futures Flying

Bitcoin traded steady around the $19,000 level as the aggregate futures open interest remained just shy of $7bn. The growing use of derivatives is evident across most platforms with the exception of Bitmex which continues to languish following its spat with regulators. Liquidity begets liquidity and it will take a lot more than operational restructuring to recover the venue’s tarnished reputation. 

In addition, Bitmex’s Bitcoin margined products, similar to those offered by other venues, is also gradually losing its market share against stablecoin margined products. Similarly, Ethereum’s OI held onto recent levels even as the spot languished just below $600. Technically, $620 zone has proven to be a strong area of resistance. Looking elsewhere and it is worth highlighting the persistently high OI for XRP and other tokens. 

In the Markets

Open Interest

To note, XRP’s OI is just above $450mln, whereas back in September it was a mere fraction of that at $110mln. LTC is also aggressively higher with OI at $250mln, that’s against $90mln in September. 

Of note, Grayscale Litecoin Trust still trades at a huge premium of 3000%. G7 Finance Ministers on Monday stressed they see a need to regulate digital currencies, according to a US Treasury Department statement. As per CoinDesk, US Treasury Secretary Steven Mnuchin hosted a virtual discussion Monday morning with finance ministers and central bank governors from Canada, France, Germany, Italy, Japan, the U.K, the European Commission and the finance ministers from the eurozone. 

The attendees talked about responses to the ever-changing landscape of cryptocurrencies and other digital assets as well as government efforts to prevent their use for illegal purposes, according to the statement.

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