First-Mover: Bitfinex Is Now Letting Traders Bet On Bitcoin’s Dominance

First-Mover: Bitfinex Is Now Letting Traders Bet On Bitcoin’s Dominance

Leading cryptocurrency and derivatives exchange platform, Bitfinex has launched a first-of-its-kind derivatives product – a perpetual contract that allows traders to bet on Bitcoin’s dominance in the crypto market.

. @bitfinex riddle: put your 💸 where your 👄 is

— Paolo Ardoino (@paoloardoino) May 6, 2020

Bitcoin dominance is a popular metric in the cryptocurrency industry that compares the ratio between Bitcoin’s market capitalization as against the market cap of all other existing cryptocurrencies (altcoins).

While data from Coingecko currently puts Bitcoin’s dominance at 65.8% at the time of writing this report, that number is known to fluctuate over time and could even swing harshly against Bitcoin during an alt-season when most altcoins rally significantly.

Understandably, the new Bitfinex Bitcoin dominance market (BTCDOMF0/USDt0) will allow traders to go long or shorts against Bitcoin’s dominance, making profits or losses as the value fluctuates. The newly launched derivative product is priced in USDT with a liquidation fund balance above 1.3 million USDT.

Bitfinex Bitcoin dominance

Being a first-mover means that Bitfinex will give the crypto industry a chance to determine whether interest and trading volumes on such a derivatives product will peak, with other competitors likely to roll out such a market in the future.

In a similar development earlier this year, Hegion reported that Bitfinex listed the $280 million Bahamas-based cryptocurrency hedge fund, Fulgur Alpha, on its platform, thereby unlocking the fund to a new set of investors.

This article originally appeared on Coinfomania.

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