The bitcoin futures market has a ‘crowded club, tiny exit’ problem – and it could cause pain
The market may be facing a dangerous liquidity mismatch as futures open interest outpaces trading volume by a significant margin.
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Summary
- BTC’s futures open interest stands at roughly $48 billion as of this writing.
- At the same time, trading volume tallies just $25 billion.
- The mismatch between the two suggests the “exit door” for traders is narrowing and could breed volatility.
