Bitcoin ReHash: Bitcoin Futures Drop $10B in 24hrs
Bitcoin Futures volume dropped $10 billion at the end of May, reaching its second-lowest level of the year, 767,000 BTC in contracts, equivalent to approximately $20 billion. This represents a nearly 7% drop in futures volume between May 29-30, with most contracts being closed on Binance.
Bitcoin Markdown on Binance
In a surprising turn of events, Bitcoin is currently experiencing a significant discount on Binance’s Australian platform. The world's largest digital currency is listed at a steep 20% markdown compared to its usual price, with one BTC trading for approximately $35,875 AUD or roughly $23,457 USD.
The discount in Bitcoin’s price on Binance’s Australian platform is attributed to the removal of fiat on-ramp services by the exchange’s payment processor’s banking partner. Australian users have been withdrawing their AUD holdings from the platform ahead of the off-ramp closure on June 1.
Consequently, AUD pairs on Binance have experienced decreased liquidity, affecting their pricing. Binance has also announced plans to delist several trading pairs with the Australian dollar on June 1, adding further complexity to the trading experience for users.
While the discounted bitcoin price may seem like an enticing arbitrage opportunity, users still face significant obstacles. Binance has halted deposits in Australian dollars, and converting other cryptocurrencies into AUD now incurs substantial premiums.
Nevertheless, Binance is actively seeking an alternate provider to restore the ability to deposit and withdraw Australian dollars. In the meantime, users can continue buying and selling cryptocurrencies using credit or debit cards at market rates.
Market Impact
In addition to this development, the Bitcoin Long-Term Holder (LTH) volume-to-exchange bias ratio has shown an intriguing trend. LTHs send more coins in profit to exchanges than coins in loss, resulting in a ratio of 1.73.
The dominance has garnered attention within the crypto space, raising questions about the future of the market. The market’s stability and whether it is entering a new bull market or heading toward a prolonged bear market will depend on a number of critical factors yet to be determined.
As bitcoin briefly surpassed the $28,000 mark at the end of May, whales and LTHs have accumulated BTC during the volatility. However, the unexpected trend in the sell-side risk ratio presents a crucial question regarding bitcoin’s future and its impact on market stability.
Bitcoin Futures
Bitcoin futures are financial contracts that allow investors to speculate on the future price of bitcoin. These contracts enable traders to agree to buy or sell bitcoin at a predetermined price on a specified future date. Bitcoin futures allow traders to profit from bitcoin's price movements without owning the underlying asset.
Bitcoin futures contracts provide several benefits to traders. They offer increased liquidity and price transparency compared to the underlying cryptocurrency markets. Additionally, futures trading allows investors to take both long (betting on price increase) and short (betting on price decrease) positions, enabling them to profit from both upward and downward price movements.
