Friday for Futures: Bitcoin price lurks for derivatives showdown

Bitcoin takes a breather from the recent rally. Bitcoin could finally use its energy reserves on Friday when the contracts on the futures markets expire. Since the price slide below the 12,000 US dollar mark a week ago, the Bitcoin price (BTC) has so far lacked the necessary impetus to return to trading above the threshold. Bitcoin continues to move sideways and buckles by 1.5 percent on a daily basis. At the time of going to press, the key cryptocurrency is trading at $ 11,580.

Momentum from Bitcoin derivatives
The market for Bitcoin options has grown six-fold since the beginning of 2020. Expiring contracts can have a correspondingly far-reaching effect on the Bitcoin price. The open interest of Bitcoin options currently comprises contracts worth 2 billion US dollars, of which around 80 percent or contracts worth around 1.6 billion US dollars are attributable to Deribit alone. The open interest of the futures contracts on the Bitcoin course, on the other hand, currently amounts to around 5 billion US dollars. The total volume of the contracts that actually expire may differ from this value. Finally, open interest also includes futures without a fixed term, so-called inverse swaps, which can be extended beyond the expiry date. However, the contracts do not represent a small proportion of the total Bitcoin market capitalization and can trigger large price movements.