Stablecoins Replace Bitcoin as Collateral for Futures Positions Amid Market Surge
The Bitcoin price has seen a significant increase in recent days, and this surge is not just limited to the market's current state. According to data from Glassnode, there has been a notable shift in the way traders are using collateral for their futures positions.
In the past two years, it was common for traders to use Bitcoin as collateral for their margin positions. However, this trend is changing rapidly. Currently, only about 12% of open interest on exchanges is backed by Bitcoin, while the remaining 88% uses stablecoins.
This shift is not directly related to the recent liquidation activity in the market. Despite a total of $570 million being liquidated over the past 24 hours, with shorts accounting for $329 million and longs for $240 million, the price of Bitcoin has managed to maintain its upward momentum.
The current price of Bitcoin is hovering around $79,000, marking an increase of more than 20% in the past week. The market's bullish structure remains intact, with renewed ETF demand and a weaker dollar contributing to this rally.