CryptoQuant.com2023-02-15

Optimism Among Investors in Derivative Markets Regarding Bitcoin and Ethereum, Yet One Metric To Keep an Eye on

The open interest (OI) in Bitcoin perpetual future markets indicates that traders have been building long positions (both OI and price up) so far this year. The same can be said for the markets for ETH perpetual futures, although there has been some evidence of profit-taking by traders as prices have risen beyond $1,650. In general, though, the situation remains the same. As a matter of fact, funding rates have been predominantly positive so far this year, demonstrating the willingness of traders to go long bitcoin. Traders of Ethereum have a bullish mood as well, with positive funding rates expected to persist in the year 2023. It is important to keep in mind, however, that orders placed by sellers have once again outstripped those placed by buyers (taker buy sell ratio below 1). In a same vein, the taker buy sell ratio for ETH has dropped below 1 once more, and it reached its all-time low of 0.89 at the end of January. This marks the lowest level it has reached since January 2023. In the meantime, there is evidence that the demand for bitcoin is increasing in the United States. This is demonstrated by the fact that the premium offered by Coinbase has increased to its highest level since June 2022. This year has also seen a significant increase in the ETH Coinbase premium, which has already reached 7%. This represents the largest price premium seen since August 2022.