Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

The total amount of short positions in bitcoin contracts on major trading platforms rose further in the past week compared to the previous week, exceeding $2 billion.

Futures (Bitcoin)
Bitcoin futures statistics include BitMEX, Coinan, Bitfinex, Bakkt, Bybit, CME, CoinFlex, Deribit, FTX, Firecoin, and OKEx.

Overview of Outages
Last week (June 21 to June 27) the Bitcoin market was mostly repetitive, with very limited actual price fluctuations throughout the week. The shocks in the market are inevitably more impactful for market participants, especially the short- to mid-term traders who dominate derivatives trading, but it is also easier to see the subjective sentiment preferences of the market, so the content of this weekly report is rather more informative than the previous week when it came out of a one-sided decline.

The total amount of bursts in major trading platforms Bitcoin contracts over the past week rose further compared to the previous week, exceeding $2 billion, with a massive concentration of bursts occurring during the 20:00-21:59 hour period on June 22, with the total amount of bursts exceeding $226 million in just two hours. It is worth mentioning that within a few hours after the end of the period, the market came out of a V-shaped reversal type of rapid rebound, but in the process of rapid rise in the market’s blowout volume is significantly lower, so it can be seen that the impact of the sharp decline in market sentiment is still more obvious.

In just the two hours of concentrated liquidity, Bybit’s total liquidity on a single platform exceeded $118 million.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin futures blowout stats, source: Skew

Trading Volume
Bitcoin’s volume peaked for nearly a month and a half on June 22 due to a sharp intraday drop followed by a quick rebound, with total daily trading volume on the platform exceeding $125 billion on that day, but the market fell off a cliff in the following two trading days, trading at just $63 billion on June 24, signaling that the futures market is gradually returning to chasing short term, highly volatile This means that the futures market is gradually returning to a situation of chasing short-term, highly volatile opportunities. Although the market warmed up slightly in the following trading days, it only returned to around $70 billion, which is still a big difference compared to the peak during the week.

Coinan’s position as the “dominant player” in terms of trading volume remains solid, with volume on the platform remaining steady at half of the total volume traded on the platform over 11 statistical periods, both at the peak and trough of volume.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin futures trading volume, source: Skew

Positions
In terms of positions, bitcoin futures position data remained in a relatively depressed state after last week’s big drop, with the data rising and then falling during the week. However, after a sustained rally in the last two trading days of last week, total positions returned to the level of $11.1 billion, so the market did not show particularly obvious signs of a cold spell. The relatively stable performance of the market also kept positions relatively stable.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin futures positions, source: Skew

Basis Spreads
Compared to the previous weekly report’s basis spread data, the proportion of ‘green’ basis spread data in this period has increased very significantly. The spread of this ‘reverse market’ signal from medium- to long-term to short-term shows the spread of bearish market sentiment, and the weakness of the market shakeout has boosted the fermentation of bearish sentiment.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin futures contract basis difference, source: Skew

Futures (Ether)
Ether futures statistics include BitMEX, Coinan, Bitfinex, Bakkt, Bybit, CME, CoinFlex, Deribit, FTX, Firecoin, and OKEx.

Overview of Outages
Last week (June 21 to June 27), although Ether also fell and then rebounded, the rebound was significantly weaker than Bitcoin’s, compared to Ether’s disc showing significantly more weakness.

The total burst of Ether contracts in the past week reached $708 million, with the peak of burst occurring at the same time as Bitcoin. 20:00-21:59 on June 22, the total burst of Ether reached $87 million, accounting for more than one-tenth of the whole week’s data. From the data of a single platform, OKEx still holds a clear “dominant” position in the percentage of bursts of Ether contracts.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Ether futures blowout statistics, source: Skew

Trading Volume
Trading volume of Ether contracts saw a particularly large wave of growth last Monday, with volume soaring from $28 billion to $53 billion on the same day, but this high level of enthusiasm quickly cooled after the dramatic volatility of the market ended in the first two trading days of last week. On June 24, the daily volume hit a recent low of $18 billion, a 66% drop compared to the peak of the week. This performance shows that the market participation in Ether is rapidly “bidding farewell to the bull market” in the absence of drastic fluctuations.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Ether futures positions, source: Skew

Positions
The situation of cold positions during the week is also obvious, as the positions basically kept a one-sided downward trend throughout the week, falling from $5 billion at the beginning of the week all the way to $4.4 billion, with the trough value reaching $4.2 billion at one point during the week, refreshing the low level of nearly 5 months since the beginning of February this year, which can be regarded as the market’s lagged reaction to the big drop in the last period, in line with the performance of the last period. The market’s lagged reaction to the previous period’s plunge can be considered.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Ether futures positions, source: Skew

Basis spreads
The basis spreads of the Ether contract are basically the same as those presented in the last weekly report. The market’s bearish attitude towards the short term has not been effectively relieved, and the market’s failure to follow Bitcoin’s rapid rebound to recover lost ground after the big drop is continuously adding fuel to the short-side sentiment, and the market’s bearish atmosphere is still continuing to ferment.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Ether futures contract basis difference, source: Skew

Options (Bitcoin)
Bitcoin options statistics cover Coinan, Bit.com , CME, Deribit, Firecoin, LedgerX and OKEx.

Trading Volume
Bitcoin options trading fever has remained largely stable, with a slight uptick last week compared to the previous statistical cycle, approaching the $4 billion mark, while Deribit’s single platform still contributes over 90% of the volume, with other major platforms not currently showing enough competitiveness in options products, and the options market’s trading volume has not escaped the relative slump of the past period The options market has not escaped the relatively low trading volume of the past period.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin options trading volume, source: Skew

Position Volume
The downward trend in bitcoin options positions continued in the previous two weeks, with market positions plummeting from over $7 billion to less than $5 billion on June 25, the quarterly expiration date, and the last time a similar value was seen back in December of last year, as bitcoin options market participation has officially dropped to its “freezing point” since the beginning of this year.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin options positions, source: Skew

Volatility
Bitcoin monthly and 10-day realized volatility rebounded last week, but the trend of the data also expresses the ‘dull’ recent situation of the market in recent times, although there has been no shortage of ups and downs recently, the data has expressed the dull status of the market.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin realized volatility, source: Skew

In terms of implied volatility, the weekly data spiked to a new high of nearly a month on the day of the crash and then quickly fell back, showing that the market’s “ability to digest” the potential extremes of the market is strong, and the repeated shocks in the second half of last week did not reignite the sharp rise in implied volatility data, and the relatively calm market conditions are expected to continue in the short term, considering that the market will meet the June monthly K-close this week. This technical graphical special point is also expected to suppress the market activity, so implied volatility flattening is not surprising.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin implied volatility, source: Skew

PCR
Bitcoin volume PCR has rallied briefly over the past week before falling quickly again, showing a relatively clear short term bearish attitude. The oscillating downward momentum of the volume PCR continues to hold, making the volume PCR an important medium- to long-term bearish basis.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin PCR, source: Skew

Options Expiration
This week’s options expiration volume has dropped significantly compared to last week’s. After all, the market will have a relatively “quiet” period after the quarterly expiration is over, and only around 12,500 bitcoin options expired this Friday, which is less than one-sixth of last Friday’s expiration value and will have minimal impact on the market.

Crypto derivatives weekly report: bearish sentiment continues to fester, contract market bo short term features become more and more obvious

Bitcoin options expiration profile, source: Skew

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/crypto-derivatives-weekly-report-bearish-sentiment-continues-to-fester-contract-market-bo-short-term-features-become-more-and-more-obvious/
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