$570M in longs got liquidated but BTC open interest…
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$570M in longs got liquidated but BTC open interest actually went up
This is the part of today's selloff I find more interesting than the price move itself.
Around $570M in long positions got liquidated over 24 hours, but BTC futures open interest actually increased from around 676k BTC to 688k BTC while price was falling.
Funding was still positive in parts of the market too, while options skew had turned more put rich.
So despite a pretty big long flush, BTC didn't really get the clean leverage reset I would've expected. Price went down while new futures positions were still being added, and the flow was leaning bearish.
I actually traded the drop on Moon and execution was clean, but seeing OI expand like that is what stopped me from immediately trying to long the bounce.
If BTC starts recovering while that newly added OI gets flushed out, thats the reaction I'm more interested in.
#cryptocurrency
This is the part of today's selloff I find more interesting than the price move itself.
Around $570M in long positions got liquidated over 24 hours, but BTC futures open interest actually increased from around 676k BTC to 688k BTC while price was falling.
Funding was still positive in parts of the market too, while options skew had turned more put rich.
So despite a pretty big long flush, BTC didn't really get the clean leverage reset I would've expected. Price went down while new futures positions were still being added, and the flow was leaning bearish.
I actually traded the drop on Moon and execution was clean, but seeing OI expand like that is what stopped me from immediately trying to long the bounce.
If BTC starts recovering while that newly added OI gets flushed out, thats the reaction I'm more interested in.
#cryptocurrency
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