INSUBCONTINENT EXCLUSIVE:
Key takeaways:Open interest in Bitcoin futures and options has ballooned to $96 billion, up sharply from 2022 levels.Elevated speculative
volatility.Stablecoin-margined collateral now dominates over crypto-margined positions, helping mitigate volatility shocks amid heightened
time BTC trades near all-time highs
Source: CointelegraphGlassnode pointed out that the introduction of US spot Bitcoin ETFs in January 2024 accelerated this trend
In 2023, open interest fluctuations were relatively tame, but post-ETF, 30-day changes have grown more volatile, reflecting a market
Binance futures data, where most trader participation thrives.Bitcoin futures volume on Binance compared to other exchanges
Source: CryptoQuantAs illustrated, in May 2025, Binance achieved a remarkable milestone, recording $1.7 trillion in futures trading volume,
the highest monthly figure in 2025
The risk of cascading liquidations still looms large, potentially triggering sharp price drops, as witnessed in the 2021 crash fueled by
Since the 2022 FTX collapse, stablecoin-margined collateral has overtaken crypto-margined positions, now dominating open interest
This shift reduces collateral volatility, offering a buffer against market shocks.Bitcoin open interest by Margin before and after the FTX
the BTC-USDT futures leverage ratio with respect to open interest is slowly increasing near its peak from early 2025
This confirms the elevated leveraged market concerns outlined above, with Bitcoin moving sideways above $100,000 for over a month.Bitcoin
estimated futures leveraged ratio for the USDT pair
Source: CryptoQuantLikewise, crypto analyst Boris Vest pointed out that traders are preparing to move in either direction
The analyst noted that while short positions continue to increase on Binance, the ratio between long and short is quite balanced, as
inferred from the normal funding rates
This increases the chances of a move in the opposite direction
sideways tradingThis article does not contain investment advice or recommendations
Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
