- Bitcoin futures market is experiencing a mixed reception after the FTX crash, affecting price volatility and utility.
- Recent data showed a decline in crypto-margined collateral, improving the structure of derivative collateral.
Since the dramatic FTX crash, Bitcoin [BTC] is on a rollercoaster ride of price volatility. This has significantly affected its usefulness in the futures market. According to the most recent data, the reception of Bitcoin in the futures market is a bit of a mixed bag. Also, it has made traders’ interaction cautious.
Read Bitcoin (BTC) Price Prediction 2023-24
According to recent data, Bitcoin’s reception in the futures market has been a bit of a mixed bag. It has also made traders cautious.
Collateral Takedown Bitcoin Futures
Dates from Glasnode indicated that there was a cautious approach towards Bitcoin (BTC) in the derivatives market. The Bitcoin Percent Futures Open Interest with Crypto-margined metric revealed a notable decline and reached an all-time low.
Analyzing the chart, it became clear that at its peak, about 70% of all Futures Open Interest relied on Crypto-Margin collateral. However, according to current data, this percentage has shrunk to about 26%.
Source: Glassnode
Collateral in the form of cryptocurrencies such as Bitcoin or Ethereum [ETH] is inherently more volatile. Fluctuations in their underlying value can also increase debt reduction.
The reduction in crypto-margined collateral has significantly improved the overall health of the derivative collateral structure per Glassnode.
The Percentage of Crypto-Margined Futures Open Interest Metric represents the percentage of futures contract open interest that is backed by cryptocurrencies rather than conventional fiat currencies.
This metric provides insight into the share of traders who choose to use cryptocurrencies as collateral or margin for their futures positions.
Current Bitcoin Futures Open Interest Statistics
When viewing the Bitcoin Futures Open Interest chart at Glasnodeit became clear that it remained relatively stable around $10 billion in recent weeks.
In April, outstanding interest fluctuated around $12 billion and $11 billion, but eventually fell to $10 billion.
At the time of writing, the Futures Open Interest was just over $10 billion. Furthermore, a closer look at the current Futures Open Interest showed that Binance was leading the pack in terms of Open Interest.
It was valued at over $3.8 billion. Bybit followed closely with a figure of more than $1 billion.
How much are 1,10,100 BTC worth today
Liquidation state examined
Based on data from Coinglass, the 24-hour liquidation amount for Bitcoin was currently reported at $32.49 million. When analyzing the distribution of liquidations, it was found that long positions and short positions were almost balanced at this time.
The liquidation amount for long positions was $4.04 million, while for short positions it was $5.26 million. At the time of writing, BTC was trading around $26,800, showing a slight gain on the daily time frame.
Source: Coinglass