Bitcoin Dominates Derivatives Market To End May On A High Note

Best Owie

3 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin’s dominance of the crypto market has been on the rise. This naturally comes with every downtrend in the market because although bitcoin takes a hit, the altcoins always record the worse losses, leaving them with less dominance of the market. Bitcoin’s dominance has however not stopped here. It has now spilled onto the derivatives market where the dominance of the pioneer cryptocurrency is even more apparent.

Bitcoin Open Interest Surges

The general open interest in the crypto market has been on a decline since the market took a hit in December. This is currently sitting at about $25 billion for the total market, down almost 50% from its peak in November at around $48 billion. This mirrors what has taken place in the crypto market over the same time period. However, when it comes to open interest, bitcoin has not fared as badly as the others.

The digital asset now accounts for the majority of the global open interest in the crypto market. Bitcoin alone makes up 63% of all open interest in the market, meaning that the cryptocurrency commands more than $15 billion in open interest.

It is a step up from the month of April when Bitcoin’s open interest dominance had declined to 50%. With the recent increase in dominance, indicators point to a decrease in speculative interest when it comes to altcoins given their recent decline.

BTC dominates global open interest | Source: Arcane Research

This follows the general trend of the crypto market where bitcoin’s dominance has also grown, although by a smaller margin. If altcoins continue to perform badly, then BTC dominance may continue to rise over the next few weeks.

BTC Is Still King

Through the month of May, the losses in the crypto market have been apparent but some have provided more cover than others. Comparing the losses incurred by all the indexes for the month of May, bitcoin has proven to be the most effective investment.

All of the indexes had recorded double-digit growth for the red month. However, bitcoin had only seen 18% losses while all the other indexes saw losses above 20%. The Small Cap Index as always took the largest hit in the market with 33% losses. As for the Mid and Large Cap Indexes, the losses came out to 28% and 24% respectively.

BTC recovers above $31,000 | Source: BTCUSD on TradingView.com

The decline in the altcoins has triggered a rise in the bitcoin dominance. BTC’s dominance had been resting at 42.5% at the beginning of May and by the end of the month had risen and peaked as high as 46%, the highest it had been in six months.

As the market ushers in a new month, it is unclear whether this dominance will continue. Given that the market has begun to recover, the altcoins may quickly reclaim what dominance they had lost to bitcoin in the last month.

Featured image from Yahoo! Sports, charts from Arcane Research and TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.