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Bitcoin Futures See Leverage Flush as Funding Turns Negative

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR

  • Bitcoin Futures Open Interest 7-day change dropped to approximately -3% by April 13.
  • The metric crossed into negative territory on April 12, signaling deleveraging.
  • The 7-day SMA funding rate shifted from 0.33% to -0.17%.
  • U.S. spot Bitcoin ETFs recorded over $816 million in weekly inflows.
  • Strategy Inc. purchased 13,927 BTC, raising holdings to 780,897 BTC.

Bitcoin derivatives traders reduced exposure over the past two weeks as open interest declined across major exchanges. Data from CryptoQuant shows a 7-day change of -3%, which signals faster position closures than new entries. At the same time, funding rates turned negative while spot demand strengthened through ETF inflows and corporate purchases.

Bitcoin Futures Open Interest Turns Negative

CryptoQuant data shows the Bitcoin Futures Open Interest 7-day change fell to about -3% by April 13. This reading means traders closed positions or faced liquidations faster than new contracts opened.

The metric crossed from positive to negative on April 12, which marked an early deleveraging shift. As a result, aggregate open interest across major exchanges moved lower within one week.

CryptoQuant tracks futures activity across Binance, Bybit, and OKX. The data reflects total outstanding contracts rather than daily trading volume.

A falling open interest often reflects reduced leverage in the market. Therefore, traders either cut risk exposure or lose positions through liquidations.

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Funding Rates Flip as Spot Demand Grows

The Bitcoin 7-day Simple Moving Average funding rate shifted from 0.33% to -0.17%. This change shows shorts now pay longs, which indicates a net short market structure.

CryptoQuant analyst Axel Adler addressed the divergence between spot and derivatives markets. He said, “As long as the spot price holds above $70,000, the divergence between a resilient spot and a bearish derivatives structure keeps the short squeeze potential intact.”

At the same time, U.S. spot Bitcoin ETFs reported net inflows exceeding $816 million last week. BlackRock’s IBIT led those inflows, according to public ETF data.

Strategy Inc. (MSTR) also expanded its Bitcoin holdings during the same period. The company acquired 13,927 BTC for over $1 billion, raising total holdings to 780,897 BTC.

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CoinShares reported that digital asset investment products recorded $1.1 billion in net inflows last week. Bitcoin products accounted for about $871 million of that total.

These inflows increased spot demand while futures traders reduced leverage. Consequently, the market showed opposing trends between derivatives positioning and spot accumulation.

Adler stated that a sustained price above $70,000 keeps short-squeeze conditions active. However, he added that weakening institutional demand could pressure prices below that level.

The futures deleveraging continued through April 13, based on the latest CryptoQuant readings. Open interest remained lower while funding rates stayed in negative territory.

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Bitcoin traded near the $70,000 level during the reporting period. Market data showed continued monitoring of both ETF flows and derivatives positioning as of April 13.

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Crypto World

Global recession inevitable if Strait of Hormuz stays shut

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Global recession inevitable if Strait of Hormuz stays shut

Ken Griffin, chief executive officer of Citadel Advisors LLC, at the Semafor World Economy Summit during the International Monetary Fund (IMF) and World Bank Spring meetings in Washington, DC, US, on Tuesday, April 14, 2026.

Aaron Schwartz | Bloomberg | Getty Images

Citadel CEO Ken Griffin said Tuesday that the global economy is headed toward a recession if the Strait of Hormuz stays shut for much longer.

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“Let’s assume [the strait is] shut down for the next six to 12 months — the world’s going to end up in a recession,” Griffin said on stage at the Semafor World Economy conference in Washington, D.C. “There’s no way to avoid that.”

As a result, the world is going to see a massive shift toward alternative fuel sources, including wind, solar and nuclear, he added. To be sure, the hedge fund leader thinks the consequences of the war would have been worse if the U.S. delayed any strikes until Iran’s military capabilities had grown.

Stocks have managed to rebound back to where they were before the U.S. first attacked Iran in February, but the optimistic sentiment among investors is contingent on the duration of the war in the Middle East. Many expect risks of an escalation in tensions between the two countries are not at all priced into the market.

Global economies especially in Asia remain vulnerable to spikes in oil prices, which remain elevated at around $100 a barrel. That’s off their highs during the conflict, but remain far above where they were before the war, at just below $70 a barrel.

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Crypto World

Paxos Labs Raises $12M to Launch Crypto Yield and Lending Platform

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Paxos Labs Raises $12M to Launch Crypto Yield and Lending Platform

Paxos Labs has raised $12 million in a strategic funding round led by Blockchain Capital to expand its Amplify platform, a suite of tools that lets companies offer crypto yield, lending and stablecoin issuance through a single integration.

The Amplify suite includes three modules — Earn, Borrow and Mint — allowing platforms to generate yield on digital assets, enable crypto-backed loans and issue branded stablecoins with a single integration designed to unlock additional features over time.

According to Tuesday’s announcement, the platform provides a single SDK with configurable controls, while Paxos Labs manages liquidity, counterparty vetting and backend operations, and shares a portion of generated revenue with integrating partners.

The company said partners including Aleo, Hyperbeat and Toku are already using the platform, with Hyperbeat reporting more than $510,000 in assets under management since launching on April 9. The raise also included participation from Robot Ventures, Maelstrom and Uniswap.

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