Bitcoin Longs

For a broad definition, Financial futures refer to a financial instrument that specifies buying or selling a financial asset between two parties for a predetermined price and a precise date in the future. For example, bitcoin futures are futures contracts that enable traders to speculate on Bitcoin's price without actually owning bitcoin. Once a futures contract is set or agreed upon, counterparties are required to fulfill the terms of the agreement upon expiration, either by selling or buying the asset…

In recent times, the Bitcoin (BTC) markets incurred volatility that led to the liquidations of long and short positions which affected both buyers and sellers remarkably. It is such that there was about $223 million in 24-hour margin calls on BitMEX platform being evenly spread between Bitcoin shorts and longs. As at press time, long positions liquidated were worth somewhat more than $111.5 million, while short positions worth $111.3 million. Long positions represent 50.04 percent of the total liquidation, while…

Bitcoin prices have declined from the $10k mark to just about $9.8k, leading to severe liquidations of BTC longs at the BitMex platform, amounting to $57.8 million.  The possible reason for the declining price is the fast rise of the number of BTC futures open interests and contracts surpassing $1 billion but hitting more than $1.5 billion. This fast-rising led to a hike in the number of aggregated open interest in the top crypto exchanges like Bitmex to over $4…