Analysis: Bitcoin futures demand drops to the lowest level since 2024

BTC-2,56%

PANews March 3 News, according to Cointelegraph analysis, Bitcoin futures demand has fallen to its lowest level since 2024, indicating that many institutional traders remain cautious. Data shows that the total open interest in Bitcoin futures on major exchanges dropped to $32 billion on Sunday, a 20% decrease from a month ago. Open interest in BTC-denominated contracts fell to 491,300 BTC, the lowest since August 2024. The monthly futures contract annualized premium rate dropped to a 1-year low of 2%, well below the neutral range of 5%-10%, and has failed to sustain a bullish level over the past 12 months.

Despite the decline in demand, analysts believe it is premature to conclude that institutions are exiting the market. The daily trading volume of spot Bitcoin ETFs still exceeds $3 billion, publicly listed companies hold over $79 billion on-chain, and CME futures open interest remains at $7.5 billion, all clear signs of institutional participation. The options market also shows no sustained pressure, with put options demand lower than call options. Analysts note that although bullish confidence is lacking, the market remains balanced. As more buyers return, fear and uncertainty will eventually dissipate.

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