Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Bitcoin [BTC] Futures: Key metric touches historic low as traders shift from volatility

2min Read

Bitcoin’s utility in the futures market has been affected by the FTX crash, resulting in price volatility. Recent data shows a decline in crypto-margined collateral.

Bitcoin [BTC] Futures: Key metric touches historic low as traders shift from crypto Volatility

Share this article

  • Bitcoin futures market experiences mixed reception post-FTX crash, impacting price volatility and utility.
  • Recent data showed a decline in crypto-margined collateral, improving derivative collateral structure.

Ever since the dramatic FTX crash, Bitcoin [BTC] has been on a rollercoaster ride of price volatility.  This has impacted its utility in the futures market significantly. According to the most recent data, Bitcoin’s reception in the futures market is a bit of a mixed bag. Also, it has made traders’ interaction with it cautious.

Read Bitcoin (BTC) Price Prediction 2023-24

According to recent data, Bitcoin’s reception in the futures market was a bit of a mixed bag. Also, it has made traders cautious.

Bitcoin Futures collateralization decline

Data from Glassnode indicated that there was a cautious approach towards Bitcoin (BTC) in the derivative market. The Bitcoin Percent Futures Open Interest with Crypto-margined metric revealed a notable decline, reaching a historic low.

Analyzing the chart, it became apparent that at its peak, approximately 70% of all Futures Open Interest relied on Crypto-Margin collateral. However, according to the current data, this percentage dwindled to around 26%. 

Bitcoin Futures Crypto-Margin

Source: Glassnode

Collateral in the form of cryptocurrencies like Bitcoin or Ethereum [ETH] is inherently more volatile. Also, fluctuations in their underlying value could magnify deleveraging events.

The reduction in Crypto-Margined collateral significantly improved the overall health of the derivative collateral structure per Glassnode.

The Percent Crypto-Margined Futures Open Interest Metric represents the percentage of futures contracts’ open interest that is backed by cryptocurrencies instead of conventional fiat currencies.

This metric provides insights into the proportion of traders who choose to utilize cryptocurrencies as collateral or margin for their futures positions.

Current Bitcoin Futures Open Interest stats

Upon examining the Bitcoin Futures Open Interest chart on Glassnode, it became apparent that it remained relatively stable around the $10 billion mark in recent weeks.

In April, the Open Interest hovered around $12 billion and $11 billion but eventually decreased to $10 billion. 

As of this writing, the Futures Open Interest stood just above $10 billion. Additionally, a closer look at the current Futures Open Interest revealed that Binance was leading the pack in terms of Open Interest.

It had a value that exceeded $3.8 billion. Bybit followed closely behind with a figure surpassing $1 billion.

Bitcoin current Open Interest

How much are 1,10,100 BTCs worth today

Liquidation state examined

Based on data from Coinglass, the 24-hour liquidation amount for Bitcoin was currently reported at $32.49 million. Analyzing the distribution of liquidations, it could be observed that long positions and short positions were almost balanced at the moment.

The liquidation amount for long positions stood at $4.04 million, while for short positions it was $5.26 million. As of this writing, BTC was trading at around $26,800, showing a slight gain on the daily timeframe.

BTC Liquidation

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.