Futures: Bitcoin price looks for derivatives showdown

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.

Iran closes mining farms
As reported by the Financial Tribune, the Iranian Power Transmission, Generation and Distribution Company (TAVANIR) has shut down around 1,100 unlicensed mining farms. The illegal establishments have exposed themselves to unusually high electricity consumption. In addition, the energy authority relied on the help of informants in the pursuit.Iran’s course in dealing with crypto mining is ambivalent. The government officially legalized mining for licensed operations last year.