FTX collapse triggers 250k Bitcoin wipeout in Futures Open Interest

exchange68September 13, 2024

0 0 1 minute read

Definition

Future’s Open Interest (OI) is the total amount of funds allocated in open futures contracts.

While the Estimated Leverage Ratio is defined as the ratio of the OI in futures contracts and the balance of the corresponding exchange.

Quick Take

Almost 250k Bitcoin has been wiped in futures OI in the past three months since the FTX collapse.
A decrease in futures volume is healthy for accumulating and continuing a higher price.
As futures decrease, a lower likelihood of liquidation cascades, so less volatility

Futures Open interest: (Source: Glassnode)

Estimated Leverage Ratio: (Source: Glassnode)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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