Bitcoin Open Interest Takes Second Largest Dump Of 2021

Bitcoin has recorded significant losses in just the first week of December. The digital asset has taken some of the largest hits for the year in just last week alone following liquidations over the weekend. This has expectedly had a huge impact on the amount of open interest in bitcoin. Following the dump, BTC denominated open interest took a nosedive. The dip in open interest was significant enough to near-record levels for 2021. With bitcoin losing more than $10,000 in value, open interest had declined rapidly. This is worrying given that open interest had dropped not too long ago and another drop this time around does not spell good news for the market. Related Reading | Majority Of Bitcoin Investors Got In This Year, Says Grayscale Bitcoin Open Interest Records Second-Largest Decline With the drop from $54,000 to as low as $40,000 on some exchanges, open interest figures plummeted. The liquidations of future positions opened the asset up to a cascade of further liquidations and open interest dropped 26% in this time frame. BTC dominated open interest volumes fell from 390,000 BTC to 330,000, as reported by Arcane Research. BTC Open Interests sees shart decline | Source: Arcane Research Saturday saw the second-largest daily drop in open interest as it lost 58,000 BTC in one day alone. It is the largest decline in a six-month period as the last time the market recorded such a sharp decline in open interest was on M...