The following is from the latest Deep Dive monthly report, Bitcoin Magazinepremium markets press release. To be one of the first to receive these statistics and other analysis of the chain’s bitcoin market directly in your inbox, subscribe now.
On such a momentous occasion, a day when the first country officially adopted Bitcoin as a legal tender, the price fell by $ 10,000 from previous recent highs, at a time of almost 20% intraday.
So what happened? Cascade settlements.
During a day when bitcoiners from all over the world agreed to buy bitcoins worth $ 30 in solidarity with El Salvador, it ultimately proved that it did not matter in terms of price action while facing an unpleasant derivatives market.
In particular, it may be blamed on BTC margin futures contracts, due to the convexity associated with the decrease in trade gains / losses and the decline in the value of collateral. During the development, open interest in BTC margin futures decreased by 17,000 BTC (about $ 800 million) in just over an hour.
Bitcoin: BTC margin of open futures interest
Also noteworthy was the funding of perpetual swap contracts which fell negative for the first time in just over a month.
Bitcoin: perpetual futures financing rate
In particular, the financing of bitcoin margin contracts was the most negative, with USD margin contracts being less effective.
Also noteworthy was the relative supply of Coinbase that followed after the sale, with a base between BitMEX XBT-USD and Coinbase BTC-USD hovering around -0.25% for a significant time.
This shows that US buyers, in particular, were in charge of clearing the mess and collecting coins in the spot markets (since Coinbase does not have a derivatives platform).
