Crypto Derivatives Decline Signals Diminishing Investor Risk Appetite 

Crypto Derivatives Decline Signals Diminishing Investor Risk Appetite 
ôîòî ïîêàçàíî ñ : beincrypto.com

2023-9-5 11:15

Declining volumes and activity on crypto futures and options markets is another signal that risk appetite for the asset class is diminishing in the bear market. Both retail and institutional activity is at a multi-year low as crypto winter drags on. 

In its September 4 week on-chain report, analytics provider Glassnode reported that crypto derivative markets showed a continual liquidity outflow. This suggests that capital continues to “move higher up the risk curve to relative safety,” it stated. 

Crypto Derivatives Decline

Derivatives markets have matured over the past few years, especially Bitcoin and Ethereum contracts. 

However, Glassnode reported that 2023 activity has fallen below levels seen in 2021 and 2022, especially for Ethereum futures and options. 

The average daily trading volume for ETH derivatives has declined to $14.3 billion per day. Furthermore, this is around half the average volume over the last two years. Over the past week, it tanked even lower to $8.3 billion per day, “suggesting liquidity continues to drain from the space.”

ETH derivatives volumes. Source: Glassnode 

Open Interest, or the number of open contracts yet to be settled, has been relatively stable for ETH products. 

According to Deribit, ETH futures OI is around $143 million, where it has been for the past week or so. Comparatively, BTC futures OI is around $238 million. This metric has also been relatively stable for the past few months. 

If you’re interested in trading Bitcoin derivatives, check out BeInCrypto’s guide here.

Crypto Market Outlook 

Glassnode concluded that the initial optimism surrounding Grayscale’s victory over the SEC was short-lived.

“Spot markets continue seeing capital outflows, and derivative markets are also witnessing a persistent decline in liquidity.”

Overall, investors appear hesitant to return to the markets, it said. 

As reported by BeInCrypto, centralized exchange volumes have also fallen to a three-year low. Moreover, institutional funds are still seeing outflows. It should be noted that these outflows have slowed from previous weeks. 

Total market capitalization continues to decline, falling to $1.07 trillion during the Tuesday morning Asian trading session. However, it has returned to its consolidation zone that formed following the mid-August dump. 

BTC was down 1.1% on the day, trading at $25,690 at the time of writing. Furthermore, it appears that $26,000 has turned from support into resistance.

ETH prices were also down 1% at $1,623, with $1,600 serving as support for the time being. 

The post Crypto Derivatives Decline Signals Diminishing Investor Risk Appetite  appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

RiskCoin (RISK) íà Currencies.ru

$ 0 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $0 - H: $0
Êàïèòàëèçàöèÿ $0 Rank 99999
Äîñòóïíî / Âñåãî 0 RISK

appetite crypto risk derivatives retail institutional both

appetite crypto → Ðåçóëüòàòîâ: 92


Bank of Thailand to Release a Consultation Paper on Crypto to “Strike the Right Balance”

This comes amidst a growing appetite for crypto amidst low-interest rates, a record low of 0.5%, and rising prices, with inflation in Thailand rising in November at the fastest pace since April. The post Bank of Thailand to Release a Consultation Paper on Crypto to “Strike the Right Balance” first appeared on BitcoinExchangeGuide.

2021-12-15 00:29


Institutions Exploring Yield Opportunities Across Layer 1s With “Greater Borrowing Appetite” for ETH – Genesis Q3 Report

Crypto lender Genesis reported a record $35. 7 billion in loan organizations for the quarter third of 2021, up 40% from the previous quarter and a growth of 586% year-over-year. In its Q3 report, the company noted the continuous institutionalization of Bitcoin has made it less attractive to more opportunistic traders.

2021-11-5 16:55


“This Isn’t Just Bitcoin Anymore,” It’s Digital Assets Creating an Ecosystem of New Opportunities, says Head of BofA Global Research

Bank of America has finally launched coverage of cryptocurrencies due to “growing institutional interest” and the massive appetite among retail clients. Candace Browning, head of global research at BofA Securities, shared in an interview with Bloomberg that the number of corporates mentioning crypto on their earnings calls has increased to about 147 in the most […] The post “This Isn’t Just Bitcoin Anymore,” It’s Digital Assets Creating an Ecosystem of New Opportunities, says Head of BofA Global Research first appeared on BitcoinExchangeGuide.

2021-10-5 16:29


While “Not an Issue Yet,” BoE Deputy Governor Sees Growing “Appetite” for Crypto Among Both Retail and Institutions

While not wanting to stop firms from doing things that make commercial sense, Sam Woods calls for a “very conservative view” on capital measures. The post While “Not an Issue Yet,” BoE Deputy Governor Sees Growing “Appetite” for Crypto Among Both Retail and Institutions first appeared on BitcoinExchangeGuide.

2021-9-24 20:12


Ôîòî:

CEO of $300 Billion Swiss Bank says Wealthy Clients Have Crypto Appetite

Zeno Staub, CEO of pro-crypto Swiss banking giant Vontobel, has revealed that the firm’s wealthy clients are showing an appetite for cryptocurrency exposure. Major banks in the United States, Europe, and Asia are beginning to offer structured Bitcoin (BTC) and virtual currency-related investment products to their wealth management clientele. Wealthy Clients Keen on Adding CryptoRead More

2021-7-29 04:00


Ôîòî:

CEO Of World’s Largest Money Manager Sees ‘Very Little’ Demand For Bitcoin From Long-Term Investors

BlackRock CEO Larry Fink said on Wednesday that long-term institutional investors are demonstrating a weak appetite for cryptocurrencies. Institutional Demand For Crypto Is Lackluster: Larry Fink Fink, the billionaire boss of the world’s largest asset manager holding close to $10 trillion in assets under management, says he is not witnessing much demand for crypto. Speaking […]

2021-7-16 15:33


Ôîòî:

Bank Of England Warns Increased Risk-Taking Has Manifested In The Price Volatility Of Bitcoin, Ethereum

The rapid price appreciation of Bitcoin, Ethereum, and other crypto-assets is enough evidence that many investors are willing to take more investment risks. Bank of England published a report on the country’s financial stability noting that the increased risk appetite in crypto assets has also caused their high volatility. The fact that many institutions want […]

2021-7-15 17:37


A Surge in Crypto Prices Reflects An “Increased Risk Appetite,” says Fed in its Monetary Policy Report

For the first time, the Federal Reserve has singled out the surge in cryptocurrency asset prices in its overall assessment of the stability of the financial system. In the brief comment revealed in the Fed’s semi-annual Monetary Policy Report to Congress released on Friday, the central bank said the rise reflected increased risk-taking by investors.

2021-7-12 15:28


Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest

Inflows into digital asset investment products totaled $233 million last week, the largest since early March. It is, however, nowhere near the record inflow seen in late January. CoinShares, one of the largest crypto asset managers, in its weekly report wrote, “We believe this recent renewed appetite for digital assets is due to a combination […] The post Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest first appeared on BitcoinExchangeGuide.

2021-4-21 18:48