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Volume of Bitcoin and Ether Futures hit an all-time high

ETFs launched in October in the U.S. boosted open interest in BTC and ETH. At the same time, Bitcoin dominance is at yearly lows.

Bitcoin and Ethereum coins
Volume of Bitcoin and Ether Futures hit an all-time high (Photo by Thought Catalog on Unsplash)

In Short

  • BTC futures open interest reached $29 billion.

  • The launch of the first bitcoin-based ETFs in October fueled the futures boom.

  • Bitcoin dominance in yearly lows.

  • GALA and BAT breakout.

After reaching record highs last November 10, bitcoin and other major cryptocurrencies have registered a significant correction. Recognizing this pullback in the cryptocurrency market, Coin Metric's latest State of the Net report highlights some of the potential market factors at play. In recent months open interest in bitcoin (BTC) and ether (ETH) futures have been on the rise and reached historic highs as well, the report notes.

Open interest tracks the total number of active futures contracts, and a rise implies that more contracts are being opened, signaling new capital flows entering the market.

Bitcoin Open Interest

Although the data from Coinmetrics shows that BTC's open interest exceeds $20 billion, the maximum reached is not specified. The Block portal provides a more detailed view of open interest, with open interest totals from the major exchanges, as seen in the chart below.

Bitcoin open interest
2021 Bitcoin futures open interest. (Source: The Block.)

The chart shows that the maximum BTC open interest is $28.8 billion, recorded last November 10. Binance was the leader in terms of open BTC contracts. According to figures from The Block, on the day of the peak, it reached $6.9 billion. Next among the leading exchanges were CME Group with $4.4 billion and FTX with $4.3 billion. There has been an 18.5% decline in bitcoin open interest since the November 10 peak, at $23.5 billion, although it remains among the highest levels this year.

Ethereum Open Interest

Regarding ETH open contracts, an all-time high (ATH) was also recorded on November 10, at $14.7 billion, as shown in the chart from The Block.

Ethereum open interest
2021 ETH open interest. (Source: The Block)

The three leading exchanges in ETH futures are, as seen in the chart, are Binance, FTX, and Bitfinex, followed by Bybit and Okex.

The Bitcoin ETF push

A month ago, this recent bitcoin futures push was associated with launching the first bitcoin futures ETF in the United States. Three bitcoin futures exchange-traded funds launched last October 19, although the bitcoin community has advocated for ETFs backed directly by bitcoin.

ETFs launched in Canada as of March of this year were directly bitcoin-backed. With an eight-month head start, these bitcoin exchange-traded funds in Canada outperform ETFs launched in the United States in assets under management (AUM). Although the ETFs launched in the U.S., especially the former, had record performance during the first few days of their listing, the ETFs available in Canada have more assets under management than their U.S. counterparts.

The Bitcoin dominance rate (BTCD) nears the all-time lows

The Bitcoin dominance rate has been falling since October 20, when it had just reached a high of 47.7%. Initially, the fall stopped by an ascending support line that had been in place since early September. BTCD bounced off this line on November 7.

However, the bounce was short-lived, and a break of the ascending support line occurred on November 19. The next day, it validated the line as resistance. RSI and MACD readings support the breakout.

Bitcoin Dominance Rate
Bitcoin Dominance Rate (Source: TradeView)

The RSI, which indicates momentum, has fallen below 50. The RSI evolution is a bearish signal, and the last time it occurred, it followed a significant bearish move. Similarly, the MACD is declining and is negative. The short-term trend is slower than the long-term trend. The nearest support area for the BTCD is at 39.8%, created by the yearly lows.

GALA and BAT, the surprises of the day

However, leaving Bitcoin aside, the pleasant surprises for this November 25 are undoubtedly GALA and BAT, tokens that recorded the most pronounced increases of the day.

GALA, a coin associated with the protocol of the same name, is trading at near $0.67 per unit. GALA surged 66.8% in the last 24 hours. It recently reached record highs after being quoted at about $0.75, and that the digital currency recorded a trading volume of over $5.7 million during this last day.

On the other hand, we have BAT, the digital currency associated with the Brave browser, which increased more than 24% compared to yesterday, trading at about $1.34 per unit at this time. The team in charge has been forging important alliances during these weeks to promote the adoption of the protocol and its interconnection with other networks, consolidating the existing one with Ethereum and opening new paths with Solana.

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