All articles tagged with #futures contracts
The Tennessee Titans signed 11 players from their 2025 practice squad to Reserve/Futures contracts, which take effect at the start of the new league year, allowing the team to retain these players during the offseason as they prepare for the next season.
Bitcoin has surged past $51,000, reaching a $1 trillion market cap for the first time since December 2021. The rise is attributed to positive news from spot Bitcoin ETFs, which have seen over $3 billion in net flows within their first month of trading. Additionally, Bitcoin futures contracts have reached a $22 billion open interest, indicating growing investor speculation for a new all-time high before April.
China's stock market decline has led to significant losses on derivatives tied to the country's equity indexes, triggering a cycle of selling in stocks and futures contracts as market participants manage their risks. The drop has hit "snowball" products, leading to forced selling of stock futures contracts and further pressuring the market. Analysts estimate the outstanding notional amount in such products to be around $50 billion, with roughly 40% of knock-ins likely being hit. As knock-in levels are reached, brokers are selling stock index futures to hedge their exposures, and the divergence between futures prices and spot prices is drawing in arbitrageurs.
Markets are now pricing in a better than 50% chance of an interest rate hike next month after a new report from the Commerce Department showed that consumer inflation accelerated in April. Traders of futures contracts tied to the Federal Reserve policy rate are now betting the Fed will hike rates again to cool inflation. The Fed’s preferred measure of inflation – the consumption expenditures index, excluding volatile food and energy prices – rose 4.7% in April, accelerating from 4.6% in March.
Bitcoin's price broke below its 55-day support at $27,000, causing $100 million worth of long BTC futures contracts to be liquidated. Despite regulatory pressure and a stronger US dollar, Bitcoin margin and futures markets displayed strength during the down-move, fueling hope of a recovery toward $28,000. Professional traders using margin and futures contracts did not abandon their bullish stance, indicating confidence that Bitcoin is more likely to reclaim $28,000 than succumb to the next support level near $24,500.
Bitcoin's estimated leverage ratio, which measures the use of leverage in the market, has reached its lowest level since December 2021, indicating low price volatility in the future. The ratio has halved since October, suggesting a decline in the degree of leverage employed in the market to magnify returns. A dwindling ratio means less sensitivity of the spot market to the derivatives market activity, making episodes of liquidations-induced wild price swings rare going forward. The continued decline in the leverage ratio suggests that bitcoin's year-to-date rally of 75% has been spot market driven.
Bitcoin climbed 4% in the past 24 hours to above $28,000 for the first time since last June as some traders see the cryptocurrency as a hedge against the traditional banking system, which has had its share of troubles over the past few weeks, including the collapse of Silicon Valley Bank and regulators' takeover of Signature Bank. The dollar value locked in the number of open bitcoin futures contracts is rising, signifying increased speculative interest in the market and potential for price volatility.
The nominal value of open interest in Bitcoin futures contracts has reached a yearly high of $12 billion, indicating increased speculative interest in the market and potential for price volatility. The increase in open interest suggests new money is flowing into the market, with traders seemingly positioning for price gains. Positive funding rates indicate a bullish trend, as long positions compensate short positions. The all-time record for open interest on Bitcoin futures is $23.8 billion, set in April 2021.