Summary
- Bitcoin perpetual futures open interest has recorded its lowest level since August last year at 413,000 BTC, according to reports.
- Binance's open interest has also significantly decreased, reaching a one-year low at 100,000 BTC, the report stated.
- The report cited CME futures market position liquidation, reduction in basis trading, and decrease in speculative trading as reasons for the decline in open interest.
Bitcoin (BTC) perpetual futures open interest (OI) has reached its lowest level since August last year.
On the 5th (local time), CoinGlass cited Glassnode data stating, "Bitcoin open interest has reached its lowest level since August last year," adding that "current Bitcoin open interest stands at 413,000 BTC (approximately $36 billion)." They further assessed that "the size of open interest has been continuously decreasing since recording 546,000 BTC in November last year."
The report also noted that Binance's open interest has significantly decreased. The media outlet stated, "Binance's Bitcoin open interest has also reached a one-year low at 100,000 BTC," adding that "the ratio of open interest to Bitcoin's market capitalization has fallen below 2% for the first time since February last year."
The outlet cited several reasons for the decline in open interest, including △liquidation of positions in the Chicago Mercantile Exchange (CME) futures market △reduction in basis trading (futures-spot arbitrage) △decrease in speculative trading due to extreme price volatility. It further added, "Considering the declining trend in open interest, most of Bitcoin's recent price increase has originated from spot trading."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
