Bitcoin Futures Open Interest Surges
Bitcoin futures open interest (OI) has experienced a significant surge in the past 24 hours, with CME Group's OI reaching an impressive 100,000 bitcoin, equivalent to $3.4 billion. This surge is not limited to CME Group; other platforms such as Binance, Deribit, Bitget, and Okx are also witnessing substantial increases in open interest.
Understanding Bitcoin Futures
For those unfamiliar with the concept, open interest (OI) in bitcoin futures represents the level of market engagement and the volume of money or contracts actively circulating. Simply put, it reflects the total number of futures contracts that have not yet been settled through a counter-trade or delivery. Recent data indicates a significant rise in bitcoin futures open interest within a span of just 48 hours.
CME Group Sets New Record
K33 Research's latest findings reveal that CME BTC futures OI has surpassed 100,000 BTC, establishing a new record. This achievement allows CME Group to command a 25% market share, narrowing the gap with Binance, the current leader in the futures sector, to a mere 4%. On October 23, CME also witnessed a notable increase in options volume and OI related to BTC futures.
Deribit's Impressive Growth
Deribit is not far behind, showing significant growth in both futures and options. The platform's bitcoin options OI has surpassed the $12 billion mark, while its bitcoin futures OI is nearing a billion. Open interest provides valuable insights into overall activity and capital flow in the futures market. An increase in OI generally indicates heightened market enthusiasm, while a decline may suggest waning interest.
Other Players in the Market
As of October 23, Binance reported a staggering $12.08 billion in bitcoin futures OI. Other notable players in the futures domain include Bitget, Okx, Gate.io, Kucoin, and Bitmex. Additionally, Dydx and Crypto.com have also experienced recent spikes in open interest. This newfound interest can largely be attributed to the potential approval of a spot bitcoin exchange-traded fund.
Promising Signs for the Future
The recent legal victory by Grayscale and Blackrock's preparations for an ETF are seen by many as positive indicators for the future. These developments have further fueled market enthusiasm and anticipation for bitcoin futures.
What are your thoughts on the surge in bitcoin futures open interest? Share your opinions in the comments section below.
Frequently Asked Questions
Is gold buying a good retirement option?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The most popular form of investing in gold is through physical bullion bars. There are other ways to invest gold. You should research all options thoroughly before making a decision on which option you prefer.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. Owning gold stocks should work well if you need cash flow from your investment.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs usually include stocks of precious metals refiners or gold miners.
How much of your portfolio should be in precious metals?
First, let's define precious metals to answer the question. Precious elements are those elements which have a high price relative to other commodities. This makes them valuable in investment and trading. The most traded precious metal is gold.
There are also many other precious metals such as platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
All precious metals prices tend to rise with the overall market. But they don't always move in tandem with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. Because they are rare, they become more pricey and lose value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What are the benefits of a gold IRA
A gold IRA has many benefits. It's an investment vehicle that allows you to diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. This allows you to easily transition if your retirement is early.
The best part is that you don't need special skills to invest in gold IRAs. They are readily available at most banks and brokerages. You don't have to worry about penalties or fees when withdrawing money.
There are, however, some drawbacks. The volatility of gold has been a hallmark of its history. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Do you want to use it as an insurance strategy or for long-term growth? Only when you are clear about the facts will you be able take an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don't need to have a lot of gold if you are selling it. Even one ounce is enough. However, you will not be able buy any other items with those funds.
How is gold taxed by Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These accounts are subject to different rules depending on where you live. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . In Massachusetts, you can wait until April 1st. New York is open until 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
bbb.org
forbes.com
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example and Risk Metrics
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
Investing In Gold vs. Investing In Stocks
These days, it might seem quite risky to invest your money in gold. Many people believe that investing in gold is not profitable. This belief is based on the fact that gold prices are being driven down by global economic conditions. They feel that gold investment would cause them to lose money. In reality, though, gold investment can offer significant benefits. Below are some of them.
Gold is the oldest known form of currency. It has been used for thousands of years. It has been used as a store for value by people all over the globe. It continues to be used in South Africa, as a way of paying their citizens.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So while the price of gold has declined, production costs haven't changed.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. It is worth considering if you intend to use it for long-term investment. Profitable gold can be sold at a lower price than it was when you bought it.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We recommend you do your research before making any final decisions. Only after doing so can you make an informed decision.
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By: Jamie Redman
Title: Bitcoin Futures Open Interest Skyrockets Amid Rising Market Enthusiasm and ETF Anticipation
Sourced From: news.bitcoin.com/bitcoin-futures-open-interest-skyrockets-amid-rising-market-enthusiasm-and-etf-anticipation/
Published Date: Tue, 24 Oct 2023 18:30:11 +0000
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