Bitcoin

<h2 id="quick-take">Quick Take</h2> 
Bitcoin futures trading has seen a significant contraction from Jan. 2021 to Sept. 2023, with the total 24-hour USD value of traded futures contracts falling from $90 billion to $18 billion. 
This contraction can be attributed to several factors. The first is a decrease in speculative activity. As market participants grow more risk-averse, they may reduce their futures trading in favor of direct holding. A decline in price volatility during this period further indicates a potential shift away from speculative trading towards a more cautious approach. 
Additionally, the observed decline may reflect a broader bearish sentiment within the market, potentially driving traders to liquidate their positions and move toward the <a href="https://cryptoslate.com/insights/bitcoin-sat-on-exchanges-sinks-to-year-to-date-low-as-binance-leads-outflows/" rel="noopener noreferrer nofollow">spot market</a>. The spot market is typically viewed as less risky, which might appeal to traders in a bearish market environment. 
This trend aligns with a broader shift in the approach and preferences of traders, moving from risk-oriented futures towards more stable and direct forms of holding. 
<figure style="width: 100%" class="wp-caption alignnone"> 
 <img src="https://pbs.twimg.com/media/F6yCNe5WsAAVife?format=webp&amp;name=900x900" alt="Futures Volume: (Source: Glassnode)" width="900" height="507"> 
 <figcaption class="wp-caption-text">
 Futures Volume: (Source: Glassnode) 
 </figcaption> 
</figure> 
<figure id="attachment_359979" aria-describedby="caption-attachment-359979" style="width: 100%" class="wp-caption aligncenter"> 
 <img class="wp-image-359979 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/09/EB9.png" alt="Exchange Balance: (Source: Glassnode)" width="1800" height="1013" srcset="https://cryptoslate.com/wp-content/uploads/2023/09/EB9.png 1800w, https://cryptoslate.com/wp-content/uploads/2023/09/EB9-300x169.png 300w, https://cryptoslate.com/wp-content/uploads/2023/09/EB9-1024x576.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/09/EB9-768x432.png 768w, https://cryptoslate.com/wp-content/uploads/2023/09/EB9-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px"> 
 <figcaption id="caption-attachment-359979" class="wp-caption-text">
 Exchange Balance: (Source: Glassnode) 
 </figcaption> 
</figure> 
The post <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com/insights/risk-aversion-in-markets-as-bitcoin-futures-trading-sees-a-significant-decline/">Risk aversion in markets as Bitcoin futures trading sees a significant decline</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Risk aversion in markets as Bitcoin futures trading sees a significant decline

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