Tag: Yahoo Finance

22 Oct by Vitaliy Dadalyan Tags:

Bitcoin Speculators Gain Upper Hand as Derivative Trading Surges

(Bloomberg) -- As Bitcoin becomes boring for many in the get-rich-quick crowd with volatility ebbing, trading in derivatives of the largest cryptocurrency is exploding.At $5 billion to $10 billion a day, the amount of derivatives traded globally exceeds Bitcoin spot volume by 10 to 18 times, according to estimates from data trackers Skew and BitcoinTradeVolume.com. The volumes were about equal at the start of the year, through definitive figures for both are hard to come by from exchanges.Leading the charge are exchanges mostly run in Asia such as BitMex and Binance that offer futures contracts for Bitcoin and smaller coins that can be leveraged more than 100 times and often perpetually. That’s especially attractive to traders still stung by Bitcoin’s almost 60% decline since late 2017 and hampered by the often thin liquidity that is a consequence of the buy-and-hold Bitcoin “whales” who controled more than a third of the decade-old...