In the past week, the trading volume of Bitcoin and Ethereum futures has both plummeted by 30% month-on-month, but futures positions have rebounded slightly. Bakkt’s Bitcoin futures single-day trading volume hit a new high, and the weekly trading volume increased by 88% month-on-month. Bitcoin options holdings increased by nearly 20% and returned to above US$2 billion.
Weekly market dynamics
Fintech company Tassat intends to launch a Bitcoin swap contract at the end of this year.
Futures market
Overview of extreme market liquidation
On Monday, Bitcoin broke the narrow range of $10,200 to $10,400 for several consecutive days. It rose by more than $400 to around $10,700 in a single day, and it broke the $52 million position that day. In the early hours of yesterday morning, Bitcoin broke the US$11,000 mark for a short time and then fell back to around US$10,800, and it liquidated US$4,800 that day.
BitMEX, Binance, Bybit, Huobi and OKEx five exchanges’ Bitcoin futures liquidation data statistics, source: Coin
Trading volume
The statistical scope of Bitcoin futures includes BitMEX, Binance, Bitfinex, Bakkt, Bybit, CME, Deribit, FTX, Huobi and OKEx. The statistical scope of Ethereum futures includes BitMEX, Binance, Bitfinex, Bybit, Deribit, FTX, Huobi and OKEx.
Bitcoin trading volume did not continue to rebound with rising prices. The trading volume of futures in the past week was 58.286 billion U.S. dollars, a sharp drop of nearly 34% from the previous week. Among them, the trading volume of Bitfinex and Deribit decreased by more than 50% month-on-month, and Binance, BitMEX, Huobi, and OKEx decreased by more than 30% month-on-month.
In contrast, Bakkt’s weekly trading volume reached 683 million U.S. dollars, an increase of 88% from the previous month. The trading volume on the 15th and 17th reached a record high, reaching nearly 2 billion U.S. dollars.
Daily trading volume of Bitcoin futures contracts, source: Skew
Ethereum’s trading volume also dropped by more than 30% , with a weekly trading volume of 33.677 billion U.S. dollars. Among them, the trading volume of Bitfinex, Deribit, FTX and OKEx all fell by more than 40% month-on-month.
Ethereum futures contract daily trading volume, source: Skew
Open positions
Bitcoin futures positions broke the downward trend for five consecutive weeks , increasing by more than 7% in the past week, returning to above US$4 billion. It is worth noting that, contrary to volume performance, Bakkt’s open positions have fallen by 23% in the past week.
Open positions in Bitcoin futures, source: Skew
As of September 17, the open position of Ethereum was $1.105 billion, an increase of 11.75% from a week ago.
Open positions in Ethereum futures, source: Skew
In the case of a 30% drop in trading volume, the holding values of Bitcoin and Ethereum both broke the downward trend for several consecutive weeks, which means that investors are still bullish in the short term. However, considering that the increase in holdings is not obvious, investors need to pay close attention to whether the value can continue to rebound in the next one or two weeks.
Option market
Trading volume
The scope of Bitcoin options statistics includes Bakkt, Bit.com (launched on August 17), CME, Deribit, Huobi (launched on September 1), LedgerX and OKEx. The scope of Ethereum options statistics is Deribit and OKEx.
In the past week, the trading volume of Bitcoin options dropped by more than 3% to around $1 billion. Among them, CME’s weekly trading volume increased by nearly 80% from the previous month to US$118 million. At the same time, the trading volume of LedgerX and Bit.com both fell by more than 30% from the previous month.
Bitcoin options daily trading volume, source: Skew
Ethereum’s trading volume also decreased simultaneously. The total trading volume in the past week was US$221 million, a drop of over 11% from the previous month.
Daily trading volume of Ethereum options, data source: Skew
Open positions
The open position of Bitcoin options gradually recovered after a reduction of more than 27% on the last Friday of August, returning to above US$2 billion . As of September 17, it was US$2.046 billion, an increase of more than 17% from a week ago. The current position value is less than 4% from the historical high at the end of August ($2.117 billion).
Open positions in Bitcoin options, source: Skew
As of September 17, the value of Ethereum holdings also increased by nearly 4% from a week ago to US$506 million.
Open positions in Ethereum options, source: Skew
Ratio of open interest PCR
The ratio of Bitcoin holdings PCR rebounded slightly from 0.68 a week ago to 0.70 now. The comparison of the PCR of Ethereum holdings did not fluctuate much a week ago, and it was 0.86 as of yesterday.
Put/Call Ratio (Put/Call Ratio, PCR) is an indicator used to measure the ratio of bearish calls. If the PCR value is greater than 1, it means that the short is greater than the long; if it is less than 1, the short is less than the long.
The ratio of Bitcoin options’ PCR holdings
Option expiration
Today, over 20,000 Bitcoin option contracts have expired, with a nominal value of nearly 220 million U.S. dollars. On the last Friday of the month (September 25, quarterly delivery day), 80,200 contracts will expire , with a nominal value of over US$874 million.
Bitcoin option expiration, source: Skew
In terms of Ethereum options, 150,600 contracts will expire today, with a nominal value of approximately US$58.13 million. Over 430,000 contracts expired on September 25 and December 25.
Ethereum option expiration status, source: Skew
