The Bitcoin (BTC) exchange is winning “DelaveRaging events” that should shape future profits, a new study says.
In one of the “QuickTake” blog posts on March 17, Onchain Analytics platform Cryptoquant revealed its $10 billion surrender in the Bitcoin futures market.
Bitcoin is watching “must-have” events for BTC price rebound
Bitcoin derivative traders have been taking on the risks steadily since BTC/USD reached its current high in mid-January.
Using data from various major crypto exchanges, Cryptoquant calculates a $10 billion reduction in total interest (OI) in futures in just three weeks from February 20th to March 4th.
“On January 17th, Bitcoin’s open profit reached an all-time high of over $33 billion, indicating that it has been such a high leverage in the market,” writes contributor Darkfost.
The drop “can be seen as a reset of the natural market, an essential stage to maintaining bullish continuity,” he argues.
Data futures oi data for top exchange. Source: Cryptoquant
The accompanying chart shows a total of 90 days of rolling changes, highlighting the severity of U-turns in the market after an all-time high.
“Currently, the 90-day change in open interest in Bitcoin futures has declined sharply, and is currently sitting at -14%,” DarkFost concludes.
“Looking at historical trends, these past delaboration provided good opportunities in the short to mid-term.”
A cryptographic “demand crisis” appears
Continuously, Cryptrick, a continuous cryptographic contributor, has seen an increasingly active derivatives market as a whole since November 2024.
Related: Peak “FUD” gives tips on $70K floor – 5 things you need to know about Bitcoin this week
Stablecoin reserves across derivative exchanges are on the rise, he even revealed this week that it will surpass the spot market. However, this is not a price increase recipe.
“Analyzing the amount and circulation of stubcoins that serve as fuel in the market, we can see that despite the rapid growth of overall stubcoin supply since November 2024, this does not necessarily bring significant benefits to the market or investors,” explains another blog post.
Kriptolik explained that the spot market is suffering from a “demand crisis.”
“Avoid high-leverage (high-risk) trading until this distribution is normal may be the wisest approach,” he added.
Replace Stablecoin Remerves (screenshots). Source: Cryptoquant
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
