Cryptocurrency prices continued their slow uptrend attempt

WorldCoinIndex Derivatives Report 2020 – Week 41 - During the 41st week of this year, cryptocurrency prices continued their slow uptrend attempt. Despite a level negative volatility, prices quickly recovered – in fact, bitcoin is currently testing the $11,000 resistance, in hopes of overcoming it.

Based on this, bitcoin saw a price high of $10,996, alongside a low of $10,484 during the past weekend. Failure to surpass the resistance point may push the coin back to $10,500+ values, whereas success in hitting $11,000 may suggest the appearance of yet another bull run.

At press time, BTC is trading at $10,990, ETH at $356, XRP at $0.25, LTC at $47, EOS at $2.64, and Chainlink at $10.12. The total cryptocurrency market cap is currently reported at $348 billion.

Weekly derivatives summary analysis

Here’s a quick preview of the main events that have occurred on the cryptocurrency derivatives market.

First off, the crypto derivatives aggregated volume has dropped from $26.47B last week, to $19.52B today. The drop is mostly related to the worldwide decrease in investment activity, due to the slowing economy. There’s little hope in successfully determining when new all-time derivative trading highs will be recorded. Similarly, the current volumes may also be influenced by the recent decision of the UK FCA to ban crypto derivatives, as highlighted below.

Here’s a brief look at trading volumes by derivatives category:

  • The perpetuals trading volume is situated at $15.76B, lower than last week’s $21.07B;
  • The futures trading volume has dropped from $5.25B to $3.61B;
  • The options trading volume has slightly increased, from $150.12M to $154.60M, although the difference is minimal.


A quick look into the current open interest rates

At this point in time, the total aggregated open interest volume is situated at $6.99, slightly higher when considering the $6.37B OI last week.

From a category standpoint, perpetuals report an open interest of $3.54B, followed by $1.86B for futures, and $1.58B for options.


Relevant cryptocurrency derivatives news

  • UK FCA decides to forbid the sale of cryptocurrency-based derivatives to retail investors, claiming to help retail consumers prevent multi-million pound losses;
  • A survey conducted by the UK FCA shows that 97% of polled individuals were against banning crypto derivatives;
  • Prominent crypto investors exit the BitMEX futures market, following the pending criminal investigation. Furthermore, BitMEX volume is dropping – in fact, BitMEX’s OI rate was overtaken by Bybit for the first time.




Risk Disclaimer

This article includes information about cryptocurrencies, derivatives and other financial instruments. Both cryptocurrencies and derivatives are complex instruments and trading digital assets involve significant risk and can result in the loss of your invested capital. All data and information is provided “as is” for personal informational purposes only, and is not intended for trading purposes or advice. Please consult your broker or financial representative to verify pricing before executing any trade.