BTC futures hit an all-time high on February 6, as Bitcoin’s price approached $ 41,000.
This is because the entire cryptocurrency market has seen several days of record performance.
Traders take advantage of cryptocurrency derivatives to maximize their returns.
On February 6, the aggregate value of all Ethereum Code reached $ 14 billion, according to data from Skew.
A future Bitcoin
The total value of all unsettled Bitcoin (BTC) futures in the cryptocurrency market soared to over $ 14 billion on February 6, according to cryptocurrency analysis firm Skew.
This record valuation follows a recent rally in Bitcoin to just under $ 41,000. Binance , the largest exchange by volume, led the contract load, accounting for just under half of the total volume of BTC futures transactions.
The leading cryptocurrency exchange was also the first to focus on BTC-based derivatives, with $ 2.33 billion in unsettled contracts.
The most famous provider of Bitcoin futures, the Chicago Mercantile Exchange (CME), came in third ($ 2.05 billion). Rival exchange, OKEx, came in second ($ 2.21 billion).
A futures contract allows its owner to buy the corresponding asset at a price agreed upon in advance, at some point in the future. Unlike an option contract, the holder is obligated to make the purchase.
$ 1.5 trillion on the horizon
With the cryptocurrency market’s record performance last week, it’s no surprise that futures traders are bullish. On Friday February 5, Ethereum (ETH) set a new record at $ 1,752.05, after gaining 18.3% since the start of the week.
The second token in the crypto market also saw its market capitalization reach $ 200 billion for the first time in its history. This makes him more valuable than several Wall Street giants including Wells Fargo, Morgan Stanley, and American Express.
Together, BTC and ETH have a total value of just under $ 900 billion. This equates to 75% of the total market cap of the market ($ 1.17 trillion).
Some in the cryptocurrency community are predicting that the $ 1.5 trillion mark will soon be crossed if current momentum continues.
Derivatives are trending
With the growing popularity of cryptocurrency derivatives, these predictions may well come true. The total volume of all derivatives traded on Binance hit a record high of $ 40 billion.
This figure includes the futures of 147 different crypto assets and is accompanied by a record $ 5.4 billion in interest outstanding on the exchange.
In addition, more and more derivative products are launched every day. Following media attention from Dogecoin ( DOGE ) over the past few days, BitMEX has announced the creation of a perpetual exchange for the famous coin itself.
With 20x leverage and Elon Musk in his role as Honorary CEO, DOGE cryptocurrency will be used more and more.