Binance futures volume hits 6-month high amid Bitcoin volatility

Crypto derivatives trading volumes connected the Binance speech surged to six-month highs successful July, signaling accrued trading enactment and perchance much volatility successful the aftermath of caller marketplace swings. 

Binance futures trading volumes deed $2.55 trillion successful July, the highest level since January, reported CryptoQuant expert J.A. Maartun connected Tuesday.

“The leap successful measurement followed a period of crisp terms moves successful some Bitcoin and altcoins,” helium said, referencing crypto’s all-time precocious marketplace capitalization of $4 trillion that pulled backmost astatine the extremity of July. 

Other crypto derivatives providers, Bybit and OKX, besides had beardown activity, with $929 cardinal and $1.09 trillion successful volume, but Binance remained the largest by a wide margin, making up much than fractional of the full measurement crossed each large exchanges, the expert said. 

“The summation successful trading suggests much users are progressive again, perchance owed to the caller terms breakout,” said the analyst.

Binance futures volumes deed multimonth highs. Source: CryptoQuant

Higher derivative marketplace participation 

Binance is the marketplace person for crypto derivatives with the highest liquidity and astir assets, offering 568 pairs. Its existent regular trading measurement is $82 billion, and it deed a four-month regular precocious of $134 cardinal connected July 18, according to CoinGecko. 

Related: $100B Binance Futures measurement backs traders’ ‘altseason’ claim

Higher futures volumes bespeak much derivatives traders and institutions are actively participating successful the market, and this often correlates with periods of important terms question oregon marketplace uncertainty.

Futures markets besides play a important relation successful terms discovery, arsenic accrued measurement means much traders are expressing their views connected aboriginal prices. Crypto futures are exchange-traded contracts that let participants to speculate connected the aboriginal terms of an plus specified arsenic Bitcoin (BTC) oregon Ether (ETH) without really owning the assets.

Open Interest remains high

Meanwhile, full Bitcoin futures OI (a measurement of the full fig oregon worth of unfastened contracts that person yet to beryllium settled) remains precocious astatine astir $79 billion. However, it has fallen from its all-time high of $88 cardinal successful mid-July, according to CoinGlass.

When OI gets excessively high, it is often followed by a leverage flushout, which tin origin crisp drops successful spot markets. 

Bitcoin futures OI remains elevated. Source: CoinGlass

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