Bitcoin perps have been at their lowest level since the collapse of the FTX exchange. This is due to a continued withdrawal of Bitcoin from exchanges, which has been occurring since the start of 2021.
Perps are a type of derivative that allow traders to speculate on the future price of Bitcoin without actually owning it. They are created by taking two opposite positions on the same asset, such as buying and selling Bitcoin at the same time. The difference between the two prices is known as the perp spread.
The collapse of FTX, one of the largest crypto exchanges, in February 2021 caused a significant drop in Bitcoin perps. This was due to the fact that many traders were using FTX to speculate on Bitcoin prices. With the exchange gone, traders had to find other ways to speculate on Bitcoin prices, which led to a decrease in perps.
At the same time, Bitcoin withdrawals from exchanges have been increasing. This is likely due to the fact that many traders are looking to take advantage of the current low prices and are moving their Bitcoin off exchanges to store it in wallets or other secure locations.
The combination of these two factors has led to Bitcoin perps being at their lowest level since the FTX collapse. This could be seen as a sign that traders are becoming more cautious with their investments and are looking to protect their assets.
It remains to be seen how long this trend will continue and what effect it will have on the price of Bitcoin. However, it is clear that traders are becoming more cautious with their investments and are looking for ways to protect their assets.
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- Source: Plato Data Intelligence: PlatoAiStream