Investors adopt risk-off approach as Bitcoin futures OI plummets to YTD low

exchange68September 13, 2024

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Definition

The total amount of funds (USD Value) allocated in open futures contracts. While crypto backed-margin is the percentage of futures contracts’ open interest that is margined in the native coin (e.g. BTC) and not in USD or a USD-pegged stablecoin.

Quick Take

Roughly 400,000 Bitcoin are currently allocated into futures open interest.
This is the lowest amount year-to-date, whilst almost 250,000 BTC less than November 2022.
The allocation of open interest is primarily in stablecoins or USD, roughly 70% of the allocation (277,000 BTC).
Crypto-backed margin is heading to all-time lows at roughly 30% allocation, indicative of a risk-off environment.
As the underlying asset of Bitcoin is volatile compared to a stablecoin or the dollar, this would take away a considerable amount of volatility.

Futures Open Interest: (Source: Glassnode)

Futures Open Interest Crypto Margined: (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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