WorldCoinIndex Derivatives Report 2020 – Week 31

Over the last 7 days, the cryptocurrency marker has reported significant value swings (in a positive way), alongside increasing trade volumes. It feels as if the economy has been stimulated, and is ready for growth.

In the case of bitcoin, a price peak of $11,354 was reported this week, and its current price is of $11,160. Thus, an uptrend in the value of BTC and other cryptocurrencies was achieved this week, which also influenced the derivatives market as we will later see.

ETH is currently trading at $339, XRP at $0.24, LTC at $57, EOS at $3.06, BCH at $293, ETC at $7.35, and LINK at $7.85.

The total cryptocurrency market cap is currently reported at $329.81 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 increased considerably, from the value of $16.24B reported last week, to $24.11B today. It’s one of the sharpest uptrends in the derivatives trading volume.

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

The options trading volume is at $265.01M, when compared to last week’s $212M.

The futures trading volume has almost doubled from $3.62B to $6.07B.

The perpetuals trading volume has skyrocketed from $12.40B to $17.77B.

Thus, these massive increases prove that cryptocurrency prices are also linked to the aggregated volume of derivatives trading. In fact, investors are looking for action – a stagnant market where nothing happens isn’t attractive, since it offers a low risk-reward ratio, alongside an even lower return-on-investment. However, a market with a volatile uptrend is capable of providing significant profits to traders and investors.


A quick look into the current open interest rates

At press time, the aggregated derivatives open interest is situated at $8.33B, over a billion higher when compared to last week’s value.

From a category standpoint, perpetuals report an open interest of $3.96B, followed by $2.79B for futures, and $1.56B for options.


Relevant cryptocurrency exchange derivatives data

In the case of perpetuals, Huobi holds the leading position amongst exchanges with a 7-day volume of $54.58B. For futures, the position is held by OKEX with a 7-day volume of $27.48B, whereas for options, Deribit remains the leading provider with a 7-day volume of $925.98M (over 2x the volume reported last week).


Based on these aspects, the derivatives market is currently very attractive to investors, and will likely remain as such as long as the stimulus through positive volatility exists.  




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.