Investors adopt risk-off approach as Bitcoin futures OI plummets to YTD low

Definition

The total amount of funds (USD Value) allocated in open futures contracts. While crypto backed-margin is the percentage of futures contracts’ open interest that is margined in the native coin (e.g. BTC) and not in USD or a USD-pegged stablecoin.

Quick Take

• Roughly 400,000 Bitcoin are currently allocated into futures open interest.
• This is the lowest amount year-to-date, whilst almost 250,000 BTC less than November 2022.
• The allocation of open interest is primarily in stablecoins or USD, roughly 70% of the allocation (277,000 BTC).
• Crypto-backed margin is heading to all-time lows at roughly 30% allocation, indicative of a risk-off environment.
• As the underlying asset of Bitcoin is volatile compared to a stablecoin or the dollar, this would take away a considerable amount of volatility.

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