Binance Coin Futures Open Interest is Highest Since the Beginning of the Year ── Is Short Flowing into the Market | CoinDesk JAPAN | Coin Desk Japan

Binance Coin (BNB) open interest (the number of open and active futures contracts tied to BNB) continues to climb, according to data from Coinglass.

Total open interest rose to 1.57 million BNB ($360 million, about ¥50.1 billion) on June 12, the highest since the beginning of the year. That number has increased by more than 8% in the last 24 hours and nearly 27% in a week.

According to data from CoinDesk, the market trading rate for Binance Coin dropped to $221 in the early hours of June 12, nearly matching the low it recorded on December 12. Since the U.S. Securities and Exchange Commission (SEC) sued Binance on the 5th, the price has fallen more than 25%.

An increase in open interest as the price falls is said to indicate an influx of short positions and bearish bets, confirming a downtrend.

Negative funding rates in the perpetual futures market also indicate a bias towards bearish positions. Funding rate refers to the cost of holding a bullish long position or a bearish short position in the market. Negative rates indicate willingness to pay bullish longs to sustain bearish shorts.

Dubai-based crypto analyst and trader Reetika Malik said: “BNB has a lot of shorts right now, which is $220 related to the Venus protocol. This is because there may be pre- and post-on-chain liquidations, leading to cascading liquidations.” The Venus Protocol is an algorithm-based money market system on the BNB chain.

Venus Protocol, presumably to calm the market, said on Twitter just before the publication of this article that if crypto assets (virtual currencies) reach the liquidation standard, the BNB chain core team will take over Venus’ position and crypto assets will He said he would not put it on the market.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜ Original: Open Interest in Binance’s BNB Token Futures Jumps to 5-Month High