Bitcoin

Open interest in exchanges increases as bitcoin volatility drops to a new low

Current skew data shows that open interest in Bitcoin (BTC) on the cryptocurrency trading platform Bybit has increased and hit a new high of $ 434 million for the combined pairs Tether (USDT) and USD on July 14.

BTC futures – open interest in bybit. Source: Skew.com

The open interest in other cryptocurrencies such as EOS, Ether (ETH) and XRP has also increased in Bybit. Open interest is the value set in a derivative contract, be it futures or options, and enables investors to measure the flow of money into and out of these contracts.

Open interest in exchanges increases as bitcoin volatility drops to a new low
Open interest in exchanges increases as bitcoin volatility drops to a new low

Oddly enough Bybit seems to be going against the grain when it comes to adding overt interest, how Bitcoin’s futures metric was pretty stable last month. just like the price of Bitcoin itself.

According to, Ben Zhou, co-founder and CEO of Bybit, the increase in open positions could related to the growth in the number of users. He said to Cointelegraph:

“When the market is volatile, the volume increases. However, as more users enter the market, the open interest will of course increase. Lately, more users have signed up, and I think this is a clear indicator that a bull market coming to us. “

BTC futures - aggregates open interest. Source: Skew.com

Bitcoin futures – aggregates open interest. Source: Skew.com

Bitcoin price continues to “hibernate”

The Bitcoin price has barely changed in the past month when the trading volume for spot markets and derivatives fell to their annual lows in June. Now several Token in the DeFi area Like Chainlink (LINK), Compound (COMP) and Aave (LEND) continue to outperform Bitcoin.

In fact, the dates of Skew, show that Bitcoin’s realized volatility has just hit a 3-year low. and its correlation with the stock market continues to grow. The 1-year correlation between Bitcoin and the SP 500 continues to rise day by day, currently it is 38.8%, according to Skew.

BTC - S  P 500 1 year correlation. Source: Skew.com

1-year correlation between BTC and the SP 500. Source: Skew.com

Bitcoin’s lack of price volatility appears to be a sign of stagnation in the not-too-distant future, or maybe even an indication that a downward trend is developing. but it is still too early to know at this point.

The current scenario mimics the end of 2018 when Bitcoin fell to $ 3,100. However, other bullish signs could change the price of Bitcoin, especially as institutions are increasingly concerned with cryptocurrency products.

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