In the past week, both Bitcoin and Ethereum futures transactions decreased by 20% from the previous month. Bitcoin options trading volume has also declined for four consecutive weeks. In the past week, trading volume was less than 1 billion U.S. dollars, a decrease of more than 10% from the previous month, and Bit.com’s trading volume accounted for 8%.
Weekly market dynamics
- OKEx launches OMG/LEND/WAVES/BAT margin trading, Yubibao and USDT perpetual contract.
- Huobi lists LEND, DOT, BAT, QTUM and CRV perpetual contracts.
- Binance Contract Trading Platform launched the DeFi Composite Index Perpetual Contract.
- FTX launched Uniswap index contracts, Zcash quarterly and perpetual contracts.
- dYdX launches LINK perpetual contract.
Futures market
Overview of extreme market liquidation
On the evening of August 25 (Tuesday), Bitcoin plummeted by more than US$700, approaching US$11,100 from around US$11,800, and liquidation amounted to US$109 million that day. On Wednesday, Bitcoin rebounded shockingly to around $11,400, with nearly $200 million in liquidation 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 futures trading volume has fallen for four consecutive weeks from its peak ($127.6 billion) in the week from July 24 to 30. It dropped sharply to $74.7 billion in the past week, a decrease of over 22% from the previous week.
Daily trading volume of Bitcoin futures contracts, source: Skew
Ethereum’s weekly trading volume also decreased by nearly 20% from the previous month to around US$30 billion .
Daily trading volume of Ethereum futures contracts, data source: Skew
Open positions
The open position is an important indicator that has a high degree of correlation with market heat. Similar to the performance of trading volume, the open position of Bitcoin futures declined slightly after continuing to hit a record high (US$5.7 billion) last Monday. As of yesterday, it fell to US$4.713 billion, a decrease of nearly 7% from a week ago.
Open positions in Bitcoin futures, source: Skew
In addition, Ethereum holdings declined for two consecutive weeks, decreasing by 10% from the previous month to USD 1.262 billion .
Open positions in Ethereum futures, source: Skew
Considering that the position data of Bitcoin and Ethereum began to gradually decrease from the peak two weeks ago, and the trading volume is also showing a downward trend, investors need to pay close attention in the next few weeks to determine whether it is a trend turning point. However, at present, the position data of Bitcoin and Ethereum is still relatively high.
Option market
Trading volume
The scope of Bitcoin options statistics includes Bakkt, Bit.com (newly added last week), CME, Deribit, LedgerX and OKEx. The scope of Ethereum options statistics is Deribit and OKEx.
Bitcoin options trading volume also declined for four consecutive weeks. The transaction volume in the past week was less than US$1 billion , to US$914 million, a decrease of more than 10% from the previous month.
It is worth noting that in the past week, Matrixport’s new derivatives trading platform Bit.com accounted for 8% of the transaction volume , surpassing OKEx (5.84%). The proportion of Deribit’s transaction volume has also dropped to around 82%.
Bitcoin options daily trading volume, source: Skew
Ethereum’s weekly trading volume has also dropped significantly by 25% to around US$200 million .
Daily trading volume of Ethereum options, data source: Skew
Open positions
After last week’s close to the historical high ($2.117 billion) before the expiration date on the last Friday of July, the open position of Bitcoin options dropped slightly to $2.028 billion in the past week, a decrease of nearly 4% from the previous week.
Open positions in Bitcoin options, source: Skew
Ethereum options holdings broke the previous record of only increasing for seven consecutive weeks. As of August 27, the data decreased slightly by 2.49% from a week ago, reaching US$469 million. However, the position data is only less than 3% lower than the historical high.
Option expiration
On September 25 (quarterly delivery day), 55,200 Bitcoin option contracts will expire, with a nominal value of over US$630 million.
Bitcoin option expiration, source: Skew
In terms of Ethereum options, 333,400 contracts will expire on the last Friday of September, with a notional value of more than US$130 million.
Ethereum option expiration status, source: Skew
