Bitcoin’s $3 Billion Open Interest Under Threat, Putting Price at Risk
2025-07-15 14:30:44
Main Idea
Bitcoin's open interest in futures has surged to $57.4 billion, with potential liquidation risks if prices drop below key levels, while funding rates and leverage ratios indicate a more sustainable market.
Key Points
1. Open interest in Bitcoin futures has surged to around $57.4 billion, with many positions likely being longs, increasing liquidation risks if prices drop.
2. Funding rates are historically low at about 10% annualized compared to 80% in 2023, indicating less leveraged and more sustainable market conditions.
3. The leverage ratio (futures versus exchange balances) has dropped from 0.32 to 0.25, showing traders rely more on capital than borrowed funds.
4. Approximately $3.4 billion flowed into Bitcoin ETFs this month, including a record $2.2 billion over two days, reflecting strong institutional interest.
5. Whales with more than 1,000 BTC have shifted into an accumulation phase, absorbing retail-driven market dynamics.
Description
Over $3 billion in options and futures sits above the $118k strike, implying big exposure and potential liquidation risk if Bitcoin falls Open interest in Bitcoin futures has surged to around $57.4 billion Funding rates are historically low, about 10% annualized compared to 80% in 2023 Daan Crypto highlights that over $3 billion in options and futures sits above the $118k strike, which can imply big exposure and potential liquidation risk if Bitcoin falls. Many of these positions are likely long...
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