Disclaimer: This only really applies to those of you that have done their best to invest the majority of their money into "safer" crypto projects. If you're freaking out because you YOLO'd your savings into Dogelonmars42069, then yeah, you might have to learn a few hard lessons. For the rest of you who have done…
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Following the crash to $35k, the Bitcoin open interest has declined to September 2021 levels. This may suggest that the market volatility will be lesser in the near future. Bitcoin Open Interest Drops To Similar Levels As In September 2021 As pointed out by an analyst in a CryptoQuant post, the BTC open interest has decreased to similar levels as last September following the crash. The “open interest” is an indicator that measures the total amount of Bitcoin futures contracts currently open in the derivatives market. The metric accounts for both long and short positions. When the value of the indicator increases, it means more money is entering into the derivatives market as investors open more positions. The volatility in the price of Bitcoin usually rises in such scenarios as it implies leverage in the market is going up, and so a liquidation squeeze may be coming. On the other hand, when the open interest declines in value, it means holders are closing up their futures positions. The resulting lower leverage environment usually leads to lower price volatility. Related Reading | Bitcoin Diamond Hands: Despite Recent Fear, Coins Aged 12-18 Months Rise To 2-Year High Now, here is chart that shows the trend in the Bitcoin open interest since the May of last year: The value of the indicator seems to have gone down recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin open interest has declined after the crash in the price of the crypto to $35k. Similar behavior was also seen during two other instances in the last six months, where a crash in the BTC price wiped out some open interest. Related Reading | Market May Be Suffering But Bitcoin And Ethereum Will Pull Back Stronger, Bloomberg Analyst During all these instances, it seems long liquidations were at play to amplify the slide in the crypto’s price. Now, the Bitcoin open interest is at the same level as September 2021. Ethereum’s open interest has also dropped significantly since its ATH, and is now the lowest since last Sept. The below chart highlights this trend. Looks like the ETH open interest has also observed a reset | Source: CryptoQuant As the open interest values are now relatively lower, the quant believes volatility should also be lesser in the near term. BTC Price At the time of writing, Bitcoin’s price floats around $33.3k, down 21% in the last seven days. Over the past month, the crypto has lost 34% in value. Here is a chart that shows the trend in the price of BTC over the last five days: Looks like BTC’s price has shown sharp downtrend in the last few days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
What do market corrections mean for crypto traders? And how can trading bots be used to an investor’s advantage?
Bitcoin and most altcoins have fallen to key support levels, but the current trading setup suggests traders lack the confidence to chase after an oversold bounce.
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I’m not sure if this topic has been discussed but is there any plan to incentivize the NFT market through raven? Since most NFTs are trade with ETH is really hard to buy something due to the price and gas fees. As a member of this community, miner and hodler I would really like to…
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The selloff in cryptocurrencies continued to start the week, with bitcoin falling to its lowest level since July. Ethereum was also trading in the red, hitting multi-month lows in the process. This comes as the overall global market cap in cryptos was down close to 9% at the time of writing. Bitcoin Bitcoin (BTC), which […]
Don’t get me wrong, I’m not jumping with joy either, but I was shitting myself during the 2018, March 2020, and May 2021 crashes while pretending to be okay… This time I don’t really care. I’m a little upset I didn’t set aside more cash to buy in a bear market, but looking forward to…
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