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Although the bitcoin price has been trading sideways with a slight recovery and little volatility over the past week, Glassnodeās new report shows that there is quite a bit of investor interest in trading BTC futures markets and hodling their ETH bags.
According to Glassnode, there is little directional bias in the Bitcoin derivatives market, suggesting that investors are trading cautiously despite the small upward price movement.
However, as for Ethereum (ETH), investors are being more optimistic, as withdrawals from exchanges āare relatively smallā compared to the increasing demand for the coin as the Merge date approaches.
Investors Regain Confidence After LUNAās Collapse
According to Glassnodeās Future Open Interest (BTC) metric, it appears that investors are already willing to trade the derivatives market again, pushing aside the wariness built around the crypto market after the collapse of Terraās LUNA and UST tokens (where billions of dollars were lost) and the mining capitulation in May and June.
āFutures trade volume appears to have stabilized in the post-LUNA collapse era. Trade volume experienced a structural decline over the 12-months since the May 2021 sell-off, but appears to be re-establishing a floor at around $33B/day.ā
Source: Glassnode
In addition, over the last year and a half, a structural change occurred in the futures markets. Although leverage remains high, the underlying spread is much more stable and lower than in early 202,1 when bitcoin was in the midst of a bull rally.
Source: Glassnode
ETHās Open Interest Flips BTCās for the First Time
At the moment, and for the first time in history, the interest of investors in trading the Ethereum derivatives market is much higher than that of bitcoin, reaching $6.6 billion in ETH versus $4.8 billion in BTC.
Moreover, 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 reached $4,900.
Source: Glassnode
TheĀ Ethereum MergeĀ has strongly influenced the demand for ETH and the increase in its price, as the vast majority of investors are putting bullish bets on prices ranging from $2,200 to $5,000. Once the Merge is completed, Ethereum should have successfully transitioned to Proof of Stake without affecting the information of the original Proof of Work chain because those two chains would become part of the same ecosystem āhence the name.
So, at this point, Ethereum fans can rejoice in saying that their beloved coin is more in demand than Bitcoin, at least in the derivatives market. The flippening, though, will have to wait.
The post Bitcoin And Ethereum Derivatives Regain Traction Despite The Crypto Winter: Glassnode appeared first on CryptoPotato.
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.