This crypto winter of 2022 seems to have been one the worst bearish trend in cryptocurrency history. Since the beginning of 2018, the whole crypto market experienced a 50% drop in its value. With the fall of Terra-LUNA’s ecosystem, things got even worse in crypto markets.
However, the crypto market is recovering slightly from its trauma in the year’s first half. Bitcoin price is suddenly picking up despite its week’s instability and swings.
Glassnode’s data shows that the major cryptocurrencies have made positive strides in their derivatives. Investors pay more attention to Bitcoin and Ethereum derivatives, with higher trading volumes for BTC futures and ETH holders.
Glassnode records indicate that Bitcoin derivatives have a slightly directional bias. The investors are therefore more careful when investing in the market. However, investors are showing signs of optimism for Ethereum.
The network has a higher demand for ETH and fewer withdrawals from its wallets. The upcoming Merge could explain these events.
As per Glassnode’s Future Open Interest (BTC) Metric, investors seem to have more confidence in the derivatives market. These investors are ignoring the fear and the events surrounding the Terra-LUNA tokens’ collapse. Slowly, however, is the impact of May-June’s mining capitulation.
Glassnode noticed an increasing level of stability in the futures trade volume. The company recalled the structural drop in trade volume that occurred over the last 12 months due to the May 2021 sell-off. It boasts $33 per Day, however, this seems to be a rebound.
The futures market also underwent a significant structural change in the last year and a half. The Bitcoin price was on a bullish trend at the start of 2021. Although leverage was rising, the spread within Bitcoin was still stable.
Bitcoin Surge in Open Interest for Ethereum
Investors pay more attention to Ethereum derivatives than Bitcoin. It is the first time that the top two assets have been compared in cryptocurrency history. Ethereum derivatives make up $6.6 billion of Ethereum, but Bitcoin derivatives have $4.8 billion.
The outplay also shows that ETH options open interest is close to its ATH in Nov 2021. This is when Ether was worth $4,900.
The influence of the Ethereum Merge is a more plausible explanation for price increases. Bullish investments are made on prices between $2.200 and $5,000 by most investors.
Featured image by BBC. Chart from TradingView.com