Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Bitcoin futures and options positions are both down about 50% from mid-April, and ethereum futures and options positions have both retreated by more than half from this month’s all-time highs.

Written by Karen

Futures Market
Extreme Market Explosion Overview

On May 19, the maximum intra-day drop in bitcoin reached more than 33%, with a total of over $6.3 billion of positions exploded across the network, of which, 88% of the long positions were exploded, nearly $2.7 billion in bitcoin and over $1.6 billion in ethereum.

Trading Volume and Open Positions

Bitcoin futures statistics include BitMEX, Cryptocurrency, Bitfinex, Bakkt, Bybit, CME, Deribit, FTX, Hotcoin and OKEx. Ether futures statistics include BitMEX, Cryptocurrency, Bitfinex, Bybit, CME, Deribit, FTX, Hotcoin and OKEx. OKEx.

Over the past week (May 17-23), Bitcoin saw its largest pullback of over 30%, resulting in a record trading heat of $861 billion, a 50% increase from the previous week. At the same time, bitcoin open positions hit a new February low of $11.7 billion last Friday and rebounded to $14.7 billion as of May 23, but are still down nearly 46% from their all-time high in mid-April, as positions were liquidated significantly and investor sentiment to reduce positions continued to spread.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Bitcoin futures contract trading volume, source: Skew

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Bitcoin futures open positions, source: Skew

Ether has plunged more than $1,800 in the past week, retracing about 50%, while trading volume reached a record $511 billion, a 7.13% increase from the previous year. Open positions fell by more than 34% on May 19 and have continued to fall without rebounding since then, standing at $5.2 billion as of March 23, down more than half from nearly $11 billion in mid- to early-May.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Trading volume of ethereum futures contracts, source: Skew

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Ether futures open positions, source: Skew

Funding Rates

Bitcoin funding rates were mostly negative on most exchanges over the past week, with all exchanges except FTX and Coinan posting negative one-week average funding rates, with OKEx reaching -0.048%. On the ethereum side, BitMEX and FTX both had average one-week funding rates above 0.01%, while OKEx and Firecoin were both below -0.05%.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Bitcoin perpetual contract funding rates by exchange

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Options Market
Trading Volume and Open Positions

Bitcoin options statistics include Cryptocurrency, Bakkt, Bit.com, CME, Deribit, Firecoin, LedgerX and OKEx, while ethereum options statistics include Bit.com, Deribit, Firecoin and OKEx.

Bitcoin options volume increased 25% week-over-week, while open positions plummeted to about $7 billion, down more than 52% from mid-April and at a new low since mid-February.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Bitcoin options contract trading volume, source: Skew

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Bitcoin options open positions, source: Skew

On the ethereum side, the volume fell back by almost 10% in a week, and the value of positions also dropped by about 50%, to $3.267 billion as of yesterday.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Ether options contract trading volume, source: Skew

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Ether Options Open Positions

Volatility

As volatility increased, one-month realized volatility rose to 113% and 175% for Bitcoin and Ether, respectively, and one-month implied volatility rose to around 120% and 170%, respectively.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

From left to right, Bitcoin One Month Realized Volatility and Bitcoin One Month ATM Implied Volatility

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

From left to right, one-month realized volatility for ethereum and one-month ATM implied volatility for bitcoin

Position PCR Ratio

Both bitcoin and ethereum position PCR ratios have fallen from near 0.85 last week to 0.7 currently, indicating a greater release of short-side sentiment.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Ratio of Bitcoin Position PCR

In addition, although an oversold rally may have occurred in recent days, the alarm has not yet been lifted as interest in bitcoin and ethereum futures and options positions has fallen sharply, and the strength of the rally in positions and the continuation of the trading fervor will need to be seen in the following week or two.

Option Exercise and Expiration Situation

Currently, the largest open positions in bitcoin options are in the $50,000 and $40,000 strikes, with 15,500 and 12,600 bitcoins respectively. In addition, 54,500 bitcoins will expire on May 28th.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Bitcoin options strikes and expirations, source: Skew

In Ether, the largest open position with a strike price of $5,000 is over 90,000 coins. over 340,000 ETH will expire on May 28 and nearly 600,000 ETH will expire on June 25.

Crypto Derivatives Weekly| Bitcoin Trading Spikes but Total Positions Plunge by More Than Half

Ether options exercise and expiration, source: Skew

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/crypto-derivatives-weekly-bitcoin-trading-spikes-but-total-positions-plunge-by-more-than-half/
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