Why Has Bitcoin Futures Open Interest Flatlined? Factors
22 Mars 2022 - 11:00PM
NEWSBTC
Bitcoin trends higher in the last few days as it approaches the mid
area around its current levels. The benchmark crypto has seen some
relief in the past days but seems unlikely to fully reclaim its
previous bullish momentum. Related Reading | Data: Bitcoin
Long-Term Holder Supply Has Stagnated Since October High At the
time of writing, Bitcoin trades at $42,500 with a 4% profit in the
last day and a 12% profit over the last two weeks. As NewsBTC has
been reporting, Bitcoin seems to be reacting to the U.S. Federal
Reserve (FED) shift in monetary policy and the armed conflict
between Russia and Ukraine. The financial institution announced a
rate hike of 25 basic points (bps) for the coming months. This
increment meets market expectations. No major announcement is
expected from the FED in the short term. As for the armed conflict,
attempts to reach a diplomatic solution have failed, with no clear
winner on the battlefield. The parties seem to be at a stalemate.
This tense calm has moved to the market and the uncertainty could
lead Bitcoin into further consolidation between its current levels,
and the high area around $30,000. In support of this thesis, Arcane
Research records no major movements in Open Interest (OI) for the
BTC-based derivatives sector. This metric has remained stable at
around 360,000 BTC and 380,000 BTC since the start of 2022. As seen
below, the OI for BTC futures has been moving sideways along the
price of Bitcoin, as it registers a decrease in volatility. In
other words, the BTC market could be experiencing a period of low
activity which suggests no important trends in either direction.
The Last Time Bitcoin Open Interest Hinted At Consolidation The
30-day volatility for Bitcoin OI futures, as Arcane Research
reported, saw a 1% low in March, and has trended a bit higher in
the last two weeks. The metric currently stands at 1.5%. The
research firm claims current trading activity has been lower than
during a similar period of consolidation in 2021. Arcane Research
added: Overall, the BTC denominated open interest remains
relatively lofty at 370,000 BTC. We’ve rarely seen open interest
being maintained at such levels for such a long duration without
any major squeeze setbacks such as those experienced during the
spring and fall bull markets and bitcoin’s short squeeze in July.
Additional data provided by Santiment indicates Bitcoin’s supply on
exchanges has been trending down as the price of BTC consolidates.
In June 2021, this metric saw a 6-month low as the market recovered
from bearish price action. As BTC’s price moved further up, the
supply followed, but the cryptocurrency managed to score a new
all-time high near $70,000. Related Reading | Ethereum Classic
Gains 60% In One Week, Why The Merge Could Push Its Price Higher
The chart below could be hinting at a similar trend as supply on
exchanges decreases, and the price consolidates.
Ethereum Classic (COIN:ETCUSD)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
Ethereum Classic (COIN:ETCUSD)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024