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.
Members of ASC Crypto can log in to access today’s note. Please sign in or start your risk-free 30-day trial today.
Lost Password?