{"id":285554,"date":"2023-01-03T17:00:44","date_gmt":"2023-01-03T17:00:44","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=285554"},"modified":"2023-01-03T22:46:24","modified_gmt":"2023-01-03T22:46:24","slug":"only-150k-bitcoin-remain-in-future-oi-as-switch-to-risk-off-fast-approaches","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/only-150k-bitcoin-remain-in-future-oi-as-switch-to-risk-off-fast-approaches\/","title":{"rendered":"Research: Only 150K Bitcoin remain in Future OI as switch to risk-off fast approaches"},"content":{"rendered":"<p>Bitcoin (BTC)\u00a0 began the year risk-off \u2014 as seen in the Futures Open Interest (OI) Crypto-Margined metric displayed below.<\/p>\n<figure id=\"attachment_285567\" aria-describedby=\"caption-attachment-285567\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285567 size-full\" style=\"color: #383838;\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin.jpg\" alt=\"Bitcoin: Percent Futures Open Interest crypto-Margined metric - Source: Glassnode.com\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin.jpg 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-300x169.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-1024x576.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-768x432.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-1536x864.jpg 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-285567\" class=\"wp-caption-text\">Bitcoin: Percent Futures Open Interest crypto-Margined metric &#8211; Source: Glassnode.com<\/figcaption><\/figure>\n<p>The decline in BTC Futures OI percentage seen from July 2021 into 2022 portrayed a recovery into a risk-on narrative throughout 2022. However, starting at almost the lowest point in two years, risk is coming off the table fast as we begin 2023.<\/p>\n<p>Throughout 2021, over 60% of Futures contracts were using BTC as the underlying asset \u2014 lending to the risk-on narrative as BTC is more volatile compared to a stablecoin.<\/p>\n<p>Meanwhile, in 2022, crypto-backed margin remained relatively flat in the 35% to 40% range \u2014 lower than 2021, but suggestive of stability returning. However, a 15% adjustment to the downside as we begin 2023 indicates that risk is coming off fast into the first quarter.<\/p>\n<figure id=\"attachment_285566\" aria-describedby=\"caption-attachment-285566\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285566 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-2.jpg\" alt=\"Bitcoin: Crypto Back Change (copy) - Source: Glassnode.com\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-2.jpg 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-2-300x169.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-2-1024x576.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-2-768x432.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/margin-2-1536x864.jpg 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-285566\" class=\"wp-caption-text\">Bitcoin: Crypto Back Change &#8211; Source: Glassnode.com<\/figcaption><\/figure>\n<p>Crypto-backed margin also fell similarly on four previous occasions:<\/p>\n<ul>\n<li>In May 2021 following the China ban on crypto<\/li>\n<li>Between November and December 2021 just after the all-time high (ATH)<\/li>\n<li>In April 2022 around the Luna collapse<\/li>\n<li>In October 2022 with the lead up to the FTX collapse entering a rocky Q4 from a macro standpoint.<\/li>\n<\/ul>\n<figure id=\"attachment_285569\" aria-describedby=\"caption-attachment-285569\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285569 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/crypto-margin.png\" alt=\"Bitcoin: Futures Open INterest crypto-Margined [BTC] - Source: Glassnode.com\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/crypto-margin.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/crypto-margin-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/crypto-margin-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/crypto-margin-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/crypto-margin-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-285569\" class=\"wp-caption-text\">Bitcoin: Futures Open Interest crypto-Margined [BTC] &#8211; Source: Glassnode.com<\/figcaption><\/figure>\n<p>Approximately 150,000 BTC remains in Futures OI \u2014 its lowest levels since April 2022 \u2014 as the risk-off trend decline continues to emerge.<\/p>\n<p>To further reveal the distinct switch away from BTC to risk-off and cash, the &#8216;Cash-Margined' metric shows a constant incline since April 2021 to a current level of 327,000 BTC \u2014 backed by cash as the underlying asset.<\/p>\n<p><figure id=\"attachment_285815\" aria-describedby=\"caption-attachment-285815\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285815 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/glassnode-studio_bitcoin-futures-open-interest-cash-margined-btc-all-exchanges.png\" alt=\"Bitcoin: Futures Open Interest Cash-Margined [BTC] - Source: Glassnode\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/glassnode-studio_bitcoin-futures-open-interest-cash-margined-btc-all-exchanges.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/glassnode-studio_bitcoin-futures-open-interest-cash-margined-btc-all-exchanges-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/glassnode-studio_bitcoin-futures-open-interest-cash-margined-btc-all-exchanges-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/glassnode-studio_bitcoin-futures-open-interest-cash-margined-btc-all-exchanges-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/glassnode-studio_bitcoin-futures-open-interest-cash-margined-btc-all-exchanges-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-285815\" class=\"wp-caption-text\">Bitcoin: Futures Open Interest Cash-Margined [BTC] &#8211; Source: Glassnode<\/figcaption><\/figure><em>Disclaimer: The levels displayed only represent exchanges covered in Glassnode data.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC)\u00a0 began the year risk-off \u2014 as seen in the Futures Open Interest (OI) Crypto-Margined metric displayed below. The decline in BTC Futures OI percentage seen from July 2021 into 2022 portrayed a recovery into a risk-on narrative throughout 2022. However, starting at almost the lowest point in two years, risk is coming off [&hellip;]<\/p>\n","protected":false},"author":1398,"featured_media":285846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77873,77921,76736],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Research: Only 150K Bitcoin remain in Future OI as switch to risk-off fast approaches<\/title>\n<meta name=\"description\" content=\"Bitcoin has started 2023 with a steep 15% decline towards a risk-off narrative as metrics show BTC used less and less as an underlying asset.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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