Odaily Planet Daily News Glassnode data shows that since July, the ratio of currency standard contracts to the open positions of Bitcoin contracts has increased from about 20% to 33%. Cash or stablecoin margin contracts still account for 65% of open interest in Bitcoin contracts.
In this regard, research firm Blockware Intelligence stated that the renewed interest in BTC coin-based contracts means that there may be a series of liquidations that cause market volatility.
Blockware Intelligence analyst said: "Using BTC as collateral for BTC derivatives is actually a double whammy. If you use BTC as collateral to do long BTC, then the price drop will make you reach the liquidation point faster, because your collateral The value of the index is also falling. Even if the long-term direction is correct, short-term volatility can be very risky. The surge of this indicator in the past few months is curious, which may indicate that traders are running out of cash and are running out of cash. Use Bitcoin leverage as a last resort to increase exposure.” (CoinDesk)