Bitcoin’s crash wipes out $5 billion in futures OI but options remain stable

This week’s crash has led to some of the highest losses we’ve seen since the collapse of FTX, wiping out billions from the crypto market. Bitcoin’s drop to below $50,000 dramatically affected the futures market, with futures open interest plunging from $31.22 billion on Aug. 5 to $26.65 billion on Aug. 6.
Graph showing Bitcoin futures open interest from July 25 to Aug. 6, 2024 (Source: CoinGlass)
Such a sharp drop in just 24 hours was most likely caused by forced liquidations of futures positions due to margin calls. When Bitcoin’s price drops below critical levels needed to maintain collateral, it usually triggers a cascade of liquidations, and over-leveraged traders have their positions forcibly closed.
The wipeout in futures open interest we’ve seen this week shows that a significant number of traders were betting on Bitcoin’s continued rise and were caught off guard by the sudden downturn, leading to a massive reduction in leveraged positions.
On the other hand, the opt

Czytaj więcej

We współpracy z: https://cryptoslate.com/bitcoins-crash-wipes-out-5-billion-in-futures-oi-but-options-remain-stable/