Bitcoin Open Interest on Binance Drops 18% After Fed Holds Rates
Summary
- Binance’s Bitcoin open interest fell about 18%% to $3.7 billion from $4.51 billion after the Fed’s rate hold.
- Binance’s Ethereum open interest also fell by $700 million, to $2.1 billion from $2.8 billion, marking a steeper decline on a percentage basis.
- The move suggests that while the Fed’s decision to hold its benchmark rate at 3.75%% eased some uncertainty, it also prompted broader deleveraging and weaker risk appetite across the derivatives market.
Forecast Trend Report by Period
Bitcoin open interest in the derivatives market shrank sharply after the Federal Reserve left interest rates unchanged.
Amr Taha, a CryptoQuant contributor, wrote on June 18 that Binance’s derivatives market saw a sharp deleveraging on June 17. Bitcoin open interest on Binance fell to $3.7 billion from $4.51 billion, erasing about $810 million in leveraged exposure in a single day.
The decline was about 18%, making it one of the sharper short-term reductions in Binance Bitcoin derivatives positions. Ethereum posted an even steeper drop on a percentage basis, with open interest on Binance falling by $700 million to $2.1 billion from $2.8 billion.
Taha attributed the drop in open interest to the Fed’s decision to hold its benchmark rate at 3.75%. While the decision cleared up some uncertainty, derivatives traders appeared reluctant to maintain leveraged exposure ahead of the volatility that often follows major macro events.
The simultaneous decline in Bitcoin and Ethereum open interest suggests weaker risk appetite across Binance’s derivatives market. Taha added that the deleveraging was not limited to Binance and occurred across major crypto derivatives exchanges.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
