Insights

Risk-off sentiment evident as crypto-margin plummets to all-time low

exchange68September 13, 2024

0 0 1 minute read

Quick Take

In the first-quarter review of derivatives, CryptoSlate showed that futures open interest had hit a one-year low.
We can break this data down further. Currently, the allocation of Bitcoin to futures open contracts is 361,000 BTC.
While allocation via crypto-margin, i.e., using the native coin (Bitcoin), is 92,000 BTC.
This puts the percentage in terms of futures contracts at roughly 26%, which can be seen trending down from the top of the 2021 bull run in January, starting at 64%.
The other 75% allocated in futures contracts is used via stablecoins or USD. As these instruments are not volatile, there is less risk than using a margin such as Bitcoin due to its volatility.
This is a signal that risk-on appetite has evaporated, and we expect this ratio to continue to play out into the short term.

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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