Bitcoin dominance has become an ever present metric among cryptocurrency traders and Bitcoin holders as it demonstrates sentiment in the market as well as the relative strength of altcoins.
BTSE’s futures products draws data from Binance-owned CoinMarketCap while it has plans to add values from TradingView in the near future.
Currently, Bitcoin’s market cap is at $171 billion, which makes up 62.2% of the entire cryptocurrency market cap.
The money flow index (MFI) is a technical oscillator that measures the inflow and outflow of money into an asset over a period of time by analyzing both price and volume.
— BTSE (@BTSEcom) July 17, 2020
BTSE is the second to offer the new trading tool after Bitfinex, but the first to offer the trading tool with multi-asset collateral capability. Using BTSE’s All-In-One-Order Book, users have greater flexibility to decide which margin they’d like to place their trade in, as well as the currency they’d like to settle in.
This is advantageous as traders can avoid price slippage if Bitcoin is in decline, and users are not required to convert assets and pay unnecessary transaction and conversion fees at the end of trade.
Traders can post margin and settle their profits in any combination of fiat currencies, including USD, EUR, HKD, and cryptocurrencies, including BTC, ETH, Tether, or USDC.
Bitcoin Dominance Futures act as a great trade alternative to Bitcoin Futures contract for more risk-averse traders, too. The trade offers less-volatile exposure because it references Bitcoin to a broader basket of digital assets. Bitcoin’s dominance value has shown less volatility than its spot price and this figure has become attractive for newly introduced Bitcoin traders within the market.