The Cascade Crash

Louis Sykes
September 8, 2021

That was quite the day yesterday...

We experienced $3.5B worth of long liquidations in the last 24 hours, with over $1.8B taking place in under an hour at the height of the crash.

Source: ByBt

Bitcoin's total open interest across all exchanges has fallen by a mighty 23%, and Ethereum's OI fell by 25%:

Source: Glassnode

Combined with this, we've seen a 21% reduction in the amount of futures contracts margined with US Dollars, along with a 7% drop in crypto-margined contracts.

That's a sizeable amount of leverage that's been flushed from the system in what can be seen as a healthy reset.

Bitcoin's aggregate average funding rate of perpetual futures positions has fallen into negative territory for the first time since July.

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