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

quick take

  • In its first quarter review of derivatives, CryptoSlate showed futures open interest hit a one-year low.
  • You can further subdivide this data. Currently, the quota for Bitcoin futures open contracts is 361,000 BTC.
  • On the other hand, the allocation by cryptocurrency, i.e. using the native coin (Bitcoin) is 92,000 BTC.
  • This brings the futures contract share to around 26%, showing a downward trend from 64% at the peak of the 2021 bull market in January.
  • The remaining 75% allocated to futures contracts will be spent via stablecoins or USD. These products are less risky than using margins such as Bitcoin as they are non-volatile.
  • This is a signal that the risk-on appetite has evaporated, and we expect this ratio to continue in the short term.
FOI Crypto Margin: (Source: Glassnode)

The risk-off sentiment, evident as cryptocurrency margins plummeted to all-time lows, first appeared on CryptoSlate.

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