According to data from blockchain analytics firm Glassnode, while on-chain transactions on BTC have remained calm, leverage in the derivatives market has been increasing positively, indicating a surge in interest in BTC price movements rather than trading in the spot market, causing Demand for BTC in the spot market is relatively lukewarm. For derivatives, futures perpetual open interest is usually the total value of all open interest in the continuous contract market, measured in BTC, and in the face of the recent price drop, perpetual open interest has reached 264,000 BTC’s all-time high, up +42% since December 4, 2021, surpassing the previous high of 258,000 BTC set on November 26.
According to first principles, falling prices will lead to the liquidation of long traders, and the growth in open interest in recent days suggests a layered bet by short traders on market weakness. Binance users account for the vast majority of futures open interest, especially as the exchange’s market share has increased significantly in recent weeks.
Since the massive liquidation on Dec. 4, Binance has absorbed 9.4% of bitcoin futures open interest and now firmly dominates with a 30% market share. In second place by open interest market share is FTX at 19%, surpassing the Chicago Mercantile Exchange (CME), which had seen a jump in market dominance when it launched the $BITO ETF in October, but now Ranked third, accounting for 15% of futures open interest.