As we enter 2024, the landscape of cryptocurrency futures is experiencing a significant change. Bitcoin's futures dominance fell from 50% to 38% in just two months.
Bitcoin's Share in Crypto Futures Dropped to 38%
Crypto investors are now exploring alternative cryptocurrencies. The dollar value locked in active futures contracts tied to Bitcoin stands at $30.45 billion, accounting for only 38% of the market-wide notional futures interest.
This marks the lowest point in at least two years, according to data tracked by Coinalyze.
Coinalyze suggests that BTC's decline in dominance relative to open interest in futures indicates that “all” money is now flowing into altcoins.
This shift in focus on alternative cryptocurrencies indicates a renewed risk appetite in the crypto market, a trend widely observed after a significant uptrend in Bitcoin.
As of the latest data, Bitcoin has gained 161% year-to-date, while Ethereum, the second largest cryptocurrency, has seen an 88% increase in value.
Bitcoin's dominance of futures open interest has fallen from around 50% in late October to its current level of 38%.
In contrast, ETH's dominance remained relatively stable at almost 21%. Meanwhile, altcoins' share of the crypto futures market increased from 32% to 41%.
*This is not investment advice.
