Definition
The total amount of funds (USD Value) allocated in open futures contracts. While crypto backed-margin is the percentage of futures contracts’ open interest that is margined in the native coin (e.g. BTC) and not in USD or a USD-pegged stablecoin.
Quick Take
- Roughly 400,000 Bitcoin are currently allocated into futures open interest.
- This is the lowest amount year-to-date, whilst almost 250,000 BTC less than November 2022.
- The allocation of open interest is primarily in stablecoins or USD, roughly 70% of the allocation (277,000 BTC).
- Crypto-backed margin is heading to all-time lows at roughly 30% allocation, indicative of a risk-off environment.
- As the underlying asset of Bitcoin is volatile compared to a stablecoin or the dollar, this would take away a considerable amount of volatility.
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Source: https://cryptoslate.com/insights/investors-adopt-risk-off-approach-as-bitcoin-futures-oi-plummets-to-ytd-low/