$4 Billion Bitcoin (BTC) Futures Deleted from the Market - News-Credit-Mortgage-Coin

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Wednesday, September 8, 2021

$4 Billion Bitcoin (BTC) Futures Deleted from the Market

Bitcoin derivatives market has suffered more than anything after the recent market crash



The 15% drop of Bitcoin has led to numerous consequences in the market. The market faced a massive sell-off, mostly due to technical oversaturation and prolonged squeeze. In addition to the decrease in open interest, more than $2.8 billion long positions were liquidated on various cryptocurrency exchanges.



Open Interest Rates Declining

Open interest is an important indicator of current market saturation. After the rapid increase in volatility, most market participants decided to close their positions in the market to avoid additional risks. In the last bull run, when Bitcoin rose from $29,000 to $52,000, open interest was significantly lower than in the previous bull run. Less open interest means less open interest in the market. The previous bull run was followed by great interest in both the options and futures markets, which generally means that price action is highly leveraged.

A large drop in open interest could also create additional opportunity for buyers, but at this point, most technical and on-chain indicators show no signs of oversold. In addition, exchange rates continue to be “on the rise” as Bitcoin and other cryptocurrency holders keep most of their funds in their personal wallets.

Market Response

At the time of writing, Bitcoin is down 4% even after rising “buy at the bottom” sentiment on social media. After El Salvador's President Nayib Bukele announced that the government would buy 150 more Bitcoins after the price fell 10%, there were also calls to buy cryptocurrencies. Currently, the country holds 550 BTC and plans to add more in the future.

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