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

• Bitcoin futures market experiences mixed reception after FTX crash, affecting price volatility and utility.
• Recent data showed a decline in crypto-marginalized collateral, which improved the structure of derivatives.

Ever since the dramatic FTX crash, Bitcoin [BTC] has been on a roller coaster ride of price volatility. This has significantly affected the utility value in the futures market. According to the latest data, Bitcoin’s reception in the futures market is a bit mixed. It has also 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 somewhat mixed. It has also made traders cautious.

Bitcoin Futures Collateral Declines

Data from Glass node indicated that there was a cautious approach to Bitcoin (BTC) in the derivatives market. Bitcoin Percent Futures Open Interest with crypto margin calculation revealed a remarkable decline, reaching an all-time low.

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

Source: Glassnode

Security in the form of cryptocurrencies such as Bitcoin or Ethereum [ETH] is inherently more volatile. Fluctuations in their underlying value can also magnify downgrade events.

The reduction in crypto-margined collateral significantly improved the overall health of the derivatives 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 calculation provides insight into the proportion of traders who choose to use cryptocurrencies as collateral or margin for their futures positions.

Current Bitcoin Futures Open Interest Statistics

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

In April, open interest hovered around $12 billion and $11 billion, but eventually dipped to $10 billion.

As of this writing, Futures Open Interest was just over $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 exceeding $3.8 billion. Bybit followed close behind with a figure that exceeded $1 billion.

How much is 1,10,100 BTC worth today

State of liquidation 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 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 small gain on the daily time frame.

Source: Coinglass