#cryptomargin

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

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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.

FOI crypto-margin: (Source: Glassnode)

The post Risk-off sentiment evident as crypto-margin plummets to all-time low appeared first on CryptoSlate.

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Bitcoin: All-time low, 29% in crypto-margin futures open interest, suggests risk-off environment

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Futures open interest is the total amount of funds (USD Value) allocated in open futures contracts.

At the time of writing, futures open interest is around 415k BTC, equivalent to $8.5bn. However, the instrument that is being used that is either margined in USD or USD-pegged stablecoins or crypto margin ie BTC.

Crypto vs Cash: (Source: Glassnode)

Currently, crypto margin is at an all-time low (29%), for the the percentage of futures contracts open interest that is margined in Bitcoin.

This suggests the environment in 2023 is risk off as 60k BTC in open interest have declined since the turn of the year. 

Percent Futures Open Interest Crypto-Margined: (Source: Glassnode)

The post Bitcoin: All-time low, 29% in crypto-margin futures open interest, suggests risk-off environment appeared first on CryptoSlate.

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What is Crypto Margin Trading? how does it work? How can you profit? This article gives all you need to know about crypto margin trading. read more here.

What is Crypto Margin Trading ?how does it work? How can you profit? This article gives all you need to know about crypto margin trading .read more here.