Ethereum surpasses Bitcoin in derivatives trading volume

    On Jan. 9, the U.S. Securities and Exchange Commission’s (SEC) Twitter account was compromised, leading to a false announcement of a spot Bitcoin ETF approval. This caused significant fluctuations in the derivatives market for Bitcoin (BTC) and Ethereum (ETH), resulting in over $50 billion in Bitcoin’s market capitalization being wiped out.

    The overall trading volume in the derivatives market increased by 8.52% to $79.02 billion, reflecting the market’s response to the fake news. However, open interest decreased by 2.78%, suggesting that many traders were closing their positions amid the uncertainty.

    Bitcoin options volume dropped by 39.73%, but open interest slightly increased by 2.18%. The market also witnessed $95.41 million in liquidations, with long positions accounting for $59.39 million and shorts for $36.02 million, indicating a bearish market reaction.

    Screengrab showing Bitcoin derivatives data on Jan. 10, 2024 (Source: CoinGlass)

    Despite the decrease in open interest on Binance and Bybit, the two largest exchanges, there was an increase in trading volume, indicating heightened activity and a trend of traders closing positions in a volatile environment.

    Symbol Price Price (24h%) Volume (24h) Volume (24h%) Market Cap Open Interest Open Interest (24h%) Liquidation (24h)
    BTC $44911.2 -4.01% $77.66B +5.23% $884.97B $19.66B -3.59% $94.36M
    ETH $2375.65 +4.47% $41.18B +77.57% $285.82B $7.78B +10.67% $49.30M

    In the Ethereum derivatives market, trading volume surged by 79.85% to $41.30 billion, while options volume decreased significantly by 51.55% to $320.63 million. Traders may have been more inclined to engage in futures contracts rather than options trading in uncertain conditions.

    Ethereum derivatives data
    Screengrab showing Ethereum derivatives data on Jan. 10, 2024 (Source: CoinGlass)

    Open interest in Ethereum increased by 11.52% to $7.81 billion, contrasting with the pattern observed in Bitcoin. This suggests a more bullish sentiment in the Ethereum market, or at least a perception of Ethereum as a more stable asset in the face of market shocks.

    The post Ethereum takes the lead over Bitcoin in derivatives trading volume appeared first on CryptoSlate.

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