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Bitcoin Futures World-Wide Hit $14 Billion for the First Time

2 mins
Updated by James Hydzik
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In Brief

  • BTC futures hit an all-time high on Feb. 6, as the top cryptocurrency neared $41,000.
  • This comes as the wider cryptocurrency market saw several days of record performance.
  • Traders are capitalizing on cryptocurrency derivatives to maximize returns.
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The aggregate value of all Bitcoin (BTC) futures reached $14 billion on Feb. 6, according to Skew data.

Bitcoin For the Future

The total value of all unsettled Bitcoin (BTC) futures in the cryptocurrency market soared to over $14 billion yesterday according to cryptocurrency analytics firm, Skew.

The record valuation follows a recent BTC rally to just under $41,000. Binance, the largest exchange by volume, led the futures charge, accounting for just under half the aggregate trading volume for BTC futures.

The top cryptocurrency exchange also led the tally for open interest in BTC-based derivatives, with $2.33 billion worth of contracts unsettled.

The most famous bitcoin futures provider, the Chicago Mercantile Exchange (CME), came third on the tally ($2.05 billion). Rival exchange OKEx held second ($2.21 billion).

A futures contract allows its owner to purchase the underlying asset at a pre-agreed price at some specified time in the future. Unlike an options 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 futures traders are optimistic. On Friday, Ethereum (ETH) set another all-time high at $1,752.05, after gaining 18.3% since the start of the week.

The cryptocurrency market’s second token also saw its market capitalization hit $200 billion for the first time in its history. This makes it more valuable than several Wall Street giants, including Wells Fargo, Morgan Stanley, and American Express.

Combined, BTC and ETH have a total valuation of just under $900 billion. This equals 75% of the market’s total market capitalization ($1.17 trillion).

Some in the cryptocurrency community predict the $1.5 trillion mark will soon be breached if the current momentum continues to grow.

Derivatives Are in

With cryptocurrency derivatives gaining popularity at the rate they are, those predictions may very well come true. The total volume for all derivatives trading on Binance reached a record $40 billion.

This includes futures for 147 different cryptocurrency assets and accompanies a record $5.4 billion in open interest on the exchange.

Moreover, more and more derivative products launch each day. Following Dogecoin’s (DOGE) media attention last week, BitMEX announced the creation of a perpetual swap for the notorious meme-coin.

With 20x leverage and Elon Musk carrying out his role as honorary CEO, more will come from crypto’s favorite meme.

And $1.5 trillion could follow.

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Emmanuel Young
Emmanuel entered the cryptocurrency space in 2013 as a cryptocurrency broker. He is a crypto-enthusiast, entrepreneur, and investor, who has built and led several projects and communities in the space. He is CEO and co-founder of Provence Intelligence, a boutique crypto-consultancy firm that aims to bridge the gap between the cryptocurrency and DLT space and the traditional world. Interests include DeFi, non-blockchain DLTs, and the synthetic derivatives space.