Trading Crypto Guide ™

Having established derivatives' growing relevance in the Bitcoin ecosystem, we now examine open interest across futures and options contracts to evaluate market leverage buildup.

Both markets have experienced remarkable OI growth over recent years: futures rising from $7.7B to $52.8B, and options expanding from $3.2B to $43.4B. Combined, total derivatives open interest peaked at $114B and remains elevated at ~$96.2B. This sustained expansion reflects significant leverage buildup within the Bitcoin economy, potentially heightening volatile price swing risks.

#BITCOIN DAILY TF UPDATE :

#BITCOIN on Daily TF, moving sideways whole week after make some new All Time highs. Nothing to predict as of now and Looking for a weekly candle to close and anticipate further opportunities.

The growth of spot and derivative volumes highlights a shift toward off-chain venues, with off-chain volume (spot, futures, options) regularly being 7-16x larger than on-chain volume.

This transition significantly impacts network metric interpretation, as traditional indicators may no longer capture full market activity scope. Nevertheless, the on-chain market remains the Bitcoin economy's heart, forming the foundational layer for the wider ecosystem. Deposits and withdrawals serve as the primary link between off-chain platforms and the Bitcoin network, ensuring on-chain activity continues playing a vital role in market structure and capital flows.