According to a recent report from Kaiko, a renowned cryptocurrency data provider, entries in the Bitcoin (BTC) derivatives markets saw a notable increase in the second half of June, driven by positive developments such as the BlackRock ETF news and miners holding their positions. Meanwhile, altcoins have struggled to regain their footing, experiencing a significant drop in the open position. Here are the details…
Open position bottomed out in these altcoins
The research reveals that BTC perpetual futures open interest pooled across five major exchanges has reached its highest level since FTX’s collapse in June. Figures point to a 12 percent increase in the second quarter, with nearly $8 billion. This rise in BTC derivatives highlights the growing investor interest and confidence in Bitcoin’s future prospects. However, the story takes a different turn when it comes to altcoins. Altcoin open interest has not recovered, especially after falling nearly 40 percent in the five days between June 9 and June 14. As a result, altcoin open interest is currently stagnant at multi-year lows, displaying a contrasting narrative to the Bitcoin derivatives market.
Notably, the combined open interest for eight altcoins categorized as securities in both Binance and Coinbase lawsuits fell a significant 30 percent in the second quarter, amounting to about $480 million. Affected altcoins include Cardano ADA, Solana SOL, Polygon MATIC, Filecoin FIL, Sandbox SAND, Decentraland MANA, Algorand ALGO, and Axie Infinity AXS. Among these altcoins, Cardano’s ADA, Sandbox’s SAND, and Algorand’s ALGO saw the most significant drops in open contracts, with drops of over 40 percent in the second quarter. This decline reflects declining interest in these particular altcoins, potentially linked to market dynamics and regulatory uncertainties surrounding their classification as securities.
Why are market performances different?
The difference in market performance between Bitcoin and altcoins can be attributed to several factors. Bitcoin’s status as the largest and most established cryptocurrency, coupled with the recent positive news about the potential approval of a Bitcoin ETF by BlackRock, has likely fueled the surge in BTC derivatives market activity. On the other hand, regulatory concerns and market volatility may have contributed to the prolongation of altcoins’ recovery struggle.
As Bitcoin continues to dominate the cryptocurrency market, the performance and recovery of altcoins remains a matter of interest and concern for investors. The coming months will provide more insight into whether altcoins can regain their momentum or whether Bitcoin will retain its position as the driving force behind the growth of the cryptocurrency industry.
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