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Bitcoin Futures Open Interest Collapses as BTC Crashes 6 Percent

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Wed, 09/02/2020 - 14:25
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Alex Dovbnya
The market was shaken by news of South Korea's largest crypto exchange being investigated by police
Bitcoin Futures Open Interest Collapses as BTC Crashes 6 Percent
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Open interest (OI) in Bitcoin futures offered by the biggest exchanges has collapsed by over 5.25 percent in the aftermath of BTC's six percent crash, according to data provided by Bybt.

Binance, whose site went down during this turmoil, took the biggest hit in terms of OI, 14 percent.

Huobi and CME Group also recorded double-digit losses (11.78 percent and 11.46 percent, respectively).

Bitcoin's rally hits a snag

After starting this month on a high note, the cryptocurrency market showed its ugly side on Sept. 2.

Bitcoin collapsed all the way to $11,115 at 11:22 a.m. UTC before bouncing to its current level of $11,312 on the Bitstamp exchange.

BTC
Image by tradingview.com

The bellwether cryptocurrency suffered the double-whammy of the Bithumb police raid and plunging gold. 

Bithumb, the number one crypto exchange in South Korea, is currently under investigation for allegedly defrauding investors with its native BXA token, according to a recent report published by The Seoul Shinmun.

This came just a little over a week after Coinbit, another prominent South Korean exchange, was seized by police after it turned out that 99 percent of its trading volume was fake.

Related
Ethereum Keeps Chipping Away at Bitcoin’s Dominance as ETH/BTC Hits Highest Level Since Early 2019

An all-around carnage

Overall, $667 mln worth of crypto has been wiped out across major exchanges over the past 24 hours, with longs being responsible for 91 percent of the sum.

Ethereum holders had it even worse than Bitcoiners, watching the top altcoin tank over 12 percent to an intraday low of $420.

The ongoing carnage is not limited to the crypto market. The shares of Tesla are now down over eight percent.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.