Although bitcoin price has been trading sideways for the past week with a slight recovery and little volatility, Glassnode’s new report reveals that there is quite a bit of investor interest in trading the BTC futures markets and testing their ETH pockets .
According to Glassnode, there is little directional bias in the bitcoin derivatives market, suggesting investors are trading cautiously despite the small price action to the upside.
However, investors are more bullish on Ethereum (ETH) as withdrawals from exchanges are “relatively small” compared to the surge in demand for the coin as the merger date approaches.
Investors regain confidence after LUNA collapse
According to Glassnode’s Future Open Interest (BTC) metric, it appears that investors are already poised to trade the derivatives market again, putting aside the caution raised after the collapse of Terra’s LUNA and UST tokens (where billions of Dollars lost) built around the crypto market ) and the mining capitulation in May and June.
“Futures trading volume appears to have stabilized in the post-LUNA collapse era. Trading volume has seen a structural decline in the 12 months since the May 2021 sell-off, but appears to be bottoming out again at around $33bn/day.”
Source: Glassnode
In addition, there has been a structural change on the futures markets over the past year and a half. While leverage remains high, the underlying spread is much more stable and lower than it was in early 2021 when Bitcoin was in the midst of a bullish rally.
Source: Glassnode
Ethereum’s open interest is flipping that of Bitcoin for the first time in history
At the moment and for the first time in history, investor interest in trading Ethereum derivatives is much higher than Bitcoin, reaching $6.6 billion in ETH versus $4.8 billion in BTC.
Furthermore, this indicator shows that ETH Options Open Interest is on the verge of reaching its ATH mark registered in late November 2021 when the price of ETH touched $4,900.
Source: Glassnode
That Ethereum merger has greatly impacted the demand for ETH and the rise in its price as the vast majority of investors are making bullish bets on prices between $2,200 and $5,000. Once the merge is complete, Ethereum should have successfully transitioned to Proof of Stake without affecting the original Proof of Work chain’s information, as these two chains would become part of the same ecosystem – hence the name.
At this point, Ethereum fans can be happy that their beloved coin is more in demand than Bitcoin, at least in the derivatives market. However, flipping will have to wait.
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