Bitcoin’s Share in Crypto Futures Trading Slides as Altcoin Profits Allure Traders

Crypto
traders
are
increasingly
looking
to
alternative
cryptocurrencies
as
2023
draws
to
a
close.

The
dollar
value
locked
in
the
number
of
active
futures
contracts
tied
to
bitcoin
now
accounts
for
38%
of
the
market-wide
notional
futures
open
interest
of
$30.45
billion.
That’s
the
lowest
in
at
least
two
years,
according
to
data
tracked
by
Coinalyze.

“Seems
‘all’
the
money
is
going
into
alts
now,”
Coinalyze
told
CoinDesk,
explaining
the
decline
in
BTC’s
dominance
by
open
interest
in
futures.

The
data
show
renewed
risk
appetite
in
the
crypto
market
typically
observed
after
a
notable
bitcoin
uptrend.

Bitcoin,
the
leading
cryptocurrency
by
market
value,
has
surged
over
60%
to
$43,100
since
Oct.
1,
mainly
due
to

dwindling
Treasury
yields
and
expectations
that
the
U.S.
Securities
and
Exchange
Commission
would
soon
approve
one
or
more
spot
BTC
ETFs.

As
of
writing,
BTC
was
up
161%
on
a
year-to-date
basis,
and
ether,
the
second-largest
cryptocurrency,
traded
88%
higher.

BTC’s
dominance
by
futures
open
interest
has
declined
from
nearly
50%
in
late
October
to
48%.
ETH’s
dominance
has
remained
steady
at
nearly
21%,
while
the
share
of
altcoins
has
increased
from
32%
to
41%.