led the rally. This further led to the overall market experiencing increased volatility. Despite such scary scenes, there might come a small indication of relief…’s price recovered slowly after it dropped below $19,000 this week for the first time since the June crypto crash. Moving on from the spot market sector, the derivative aspect for BTC witnessed some interesting movements as well.
Herein, Open Interest is one measure that can be used to suggest whether markets are still in frenzy mode. As per Glassnode’s data, a drop here would indicate a healthy will to stay or rather survive in such conditions. This was indeed the same situation.to a “healthy” all-time-low of 13%.The said drop recorded a 42% drop from the ATH of 55%, recorded during the May 2021 top. This was recorded during a period of “peak exuberance and speculation”.
Herein, volatility could likely subside as more mainstream money flowed into the market. Ergo, less volatility around sell-offs. To support this narrative, Bitcoin’s accumulation didn’t deter as well. Hence, this offered the right support at a difficult time such as this. A crypto analyst called ‘Crypto Rover’ also shared a Glassnode chart that shed some light on this matter.