Glassnode Report Shows Bitcoin And Ethereum Derivatives Gain Massive Traction
The 2022 crypto winter seems to be one of the most severe bearish
trends in cryptocurrency history. This saw the entire crypto market
cut down by over 50% in value since the beginning of the year.
Also, the situation in the crypto market got worse with the
collapse of the Terra-LUNA ecosystem. However, the crypto market is
recovering slightly from its trauma in the year’s first half.
Bitcoin price is suddenly picking up despite its week’s instability
and swings. Related Reading: Uniswap Price Falls Below $9 After It
Met With A Sell-Off, What’s Next? According to the data from
Glassnode, a blockchain analytics firm, the derivatives of the
leading cryptocurrencies are making positive progress. Bitcoin and
Ethereum derivatives are receiving increased attention from
investors with more trading of BTC futures and higher ETH holders.
The record from Glassnode indicates that the Bitcoin derivatives
market has a slight directional bias. This means that investment in
the market is coming with more caution from the investors. But on
the side of Ethereum, there is evidence of optimism from the
investors. The network records more demands for ETH against little
withdrawals from the wallets. These overall events for Ethereum
could be due to the upcoming Merge. As per Glassnode’s Future Open
Interest (BTC) Metric, investors seem to have more confidence in
the derivatives market. They are laying aside the events and fear
that came with the collapse of Terra-LUNA tokens. Also, the effect
of the May-June mining capitulation is wading off gradually.
Glassnode noted the increasing stability in futures trading volume.
It recalled that the past 12 months from the sell-off since May
2021 posed a structural dip in trade volume. However, it seems to
be staging a come-back as it boasts $33 per day. Also, the futures
markets passed through a structural change within the past one and
half years. This was at the beginning of 2021, as the Bitcoin price
was in a bullish trend. The underlying spread was stable even as
leverage was going up. Surge In Open Interest For Ethereum Than
Bitcoin Currently, Ethereum derivatives are receiving more
attention from investors than Bitcoin. This appears to be the first
time in the history of cryptocurrency to experience such a twist
between the two leading assets. While Ethereum derivatives record
about $6.6 billion in ETH, those of Bitcoin are at $4.8 billion in
BTC. Additionally, the outplay depicts that ETH options Open
Interest is almost at its ATH as of Nov 2021. This was when Ether
hit $4,900. Related Reading: Why Are Crypto Investors Rotating From
Bitcoin To Altcoins? A more acceptable explanation for the price
increase is the influence of the upcoming Ethereum Merge. Most
investors make bullish bets on prices between $2,200 and $5,000.
Featured image from BBC, chart from TradingView.com
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