In a deflationary collapse, a sell-off occurs that first results in leverage being wiped out first before then affecting panic sellers.
Bitcoin open interest is minimal, remaining at or below 2% of the market cap since Silicon Valley Bank’s collapse, while holders remain price agnostic.
The current value of the futures open interest is roughly $9.8 billion, while the market cap is just over $500 billion.
Ethereum’s open interest is slightly more leveraged than Bitcoin in terms of open interest compared to market cap.
Ethereum’s open interest divided by market cap is 2.5%, roughly $5.2 billion in open interest with a market cap of $210 billion.
We can also see a lack of long-term holders sending Bitcoin to exchanges since the SVB collapse in March.
Open Interest: (Source: Glassnode)LTH to exchanges: (Source: Glassnode)
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