Second largest flush in BTC denominated open interest in 2021

Open interest in the futures market plummets to 325,000 BTC amid weekend carnage in the market.
Source: Skew

Last week, we mentioned how the bitcoin denominated open interest (OI) sat at bloated levels in a historical context, a worrying signal from the futures market. During bitcoin’s crash on December 4th from $54,000 to $40,000 (on certain exchanges), we got a massive liquidation cascade leading the bitcoin denominated OI to fall from 390,000 BTC to 330,000 BTC.

The bitcoin denominated OI fell by 58,000 BTC on Saturday; the second-largest daily decline in BTC denominated OI this year. Only May 19th saw a larger decline.

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