quick take
- In a deflationary collapse, selling occurs, and leverage disappears first, followed by panic selling.
- While bitcoin’s open interest is minimal, sitting at less than 2% of the market cap since the Silicon Valley bankruptcy, holders are still price agnostic.
- The present value of futures open interest is about $9.8 billion, while the market capitalization is just over $500 billion.
- Ethereum open interest is slightly more leveraged than Bitcoin in terms of open interest compared to market cap.
- Dividing the Ethereum open interest by the market cap gives us 2.5%, or about $5.2 billion in open interest against a $210 billion market cap.
- We also see a shortage of long-term holders sending bitcoin to exchanges since the SVB collapse in March.
The Post Should You Fear Bitcoin’s Deflationary Collapse? First Appeared on CryptoSlate.
