While the decline in Bitcoin and altcoins last week left most of the investors in the opposite direction, more than $ 1 billion long positions were liquidated after the fall.
While the majority of this liquidation took place in Bitcoin and Ethereum, ETH futures on Binance also fell to their lowest level since July 2022.
Coinglass data showed that the dollar locked in Ethereum transaction contracts on Binance dropped to a 13-month low of $1.41 billion, Coindesk reported.
At this point, the decline in Ethereum futures on Binance has dropped by 35% in a week, in line with the decline experienced last week.
Speaking to Coindesk, Ian Solot, co-head of digital assets at Marex Solutions, said:
“Don't worry too much about the recent drop in bitcoin and altcoins.
The drop was due to the extraordinarily low liquidity and liquidation of leverage.
Now it's time to move on.”
Looking at historical data, the decrease in ETH futures on Binance, that is, the decrease in investors' interest in ETH futures, is considered as a bullish signal since it is a situation that the market maker wants.
*Not investment advice.
