ByBit Bitcoin Futures OI Drops by Nearly 50% During the Latest Market Sell-off

The exchange has lost 7% of total open interest in the bitcoin futures market share in the last 9 days. This has the funding rates flat despite the return of greens.


The cryptocurrency market is in a green mode this week, putting an end to two weeks of red price action.

The market sentiment that had dropped to the lowest level in a year has also recovered quickly following the latest price boost. But we have 68,500 BTC options set to expire on Deribit on Friday, with a notional value of $3.6 billion. The max pain price currently sits at $54,000.

Meanwhile, the correction that resulted in billions of dollars getting liquidated has reduced the speculating FOMO and helping normalize the funding rates on the futures market.

The funding rates on bitcoin perpetual contracts have normalized to the highest point currently is 0.0404% on OKEx. On some exchanges, it can even still be negative.

The same is the case for the Ether funding rate, which is between 0.01% and 0.03%, despite the digital asset hitting a new ATH this week at about $2,720. The highest Ether funding rate is on BitMEX at 0.2026%. ETH -1.34% Ethereum / USD ETHUSD $ 3,093.16
-$41.45-1.34%
Volume 16.44 b Change -$41.45 Open $3,093.16 Circulating 117.65 m Market Cap 363.92 b
13 h 1Inch Moves to Arbitrum For Faster Throughput And Lower Gas Fees   17 h Wormhole Launches Solana-Ethereum Bridge to Move NFTs Cross-Chain 18 h Google Searches for Bitcoin Hit Dec 2020 Level, Interest in NFTs Surpass DeFi Significantly and Matched Ethereum Briefly

“Apes in the process of closing shorts on this shallow pullback. Been a rough week for shorts, who got taken for a ride higher by spot buyers. Funding still flat. Bullish” noted trader and economist Alex Kruger.

On Bybit, where traders tend to get involved in degenerate trading and get liquidated is currently having a funding rate of 0.01% on both Bitcoin and Ether perpetual contracts.

With this, the open interest on bitcoin futures has seen a substantial decline, with Bybit seeing particularly a large drop. It is, however, seen as a healthy sign for the market.

The OI on Bybit bitcoin futures is currently 446.91k BTC or $2.56 billion, down from $4.98 billion on April 16th, representing a 48.6% drop in USD terms.

As such, Bybit's share of the total open interest in the bitcoin futures market has declined from 20% to 13% in the last 9 days, as per Arcane Research. At the beginning of last year, Bybit’s share was 5% which soared to 11% by the end of the year.

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Source: Arcane Research

“Bybit has essentially lost all of the traders / coins they've on-boarded since November 2020,” noted Split Capital. It, however, is no different from the cycle BitMEX traders went through in 2018-2019, and foreign exchange (FX) was the same in the early 2010s.

Last year, BitMEX lost 24% of its market share, and currently, it has an OI of 23.5k BTC, $1.29 billion. Binance currently remains at the top with 63.2k BTC in Oi, $3.46 billion.

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