Bitcoin futures trading plummeted at the end of 2022. Bitcoin futures volume was just $386.6 billion in December, according to data from The Block. Volume fell 39% month-on-month as it experienced its worst month since October 2020, when it was $333.6 billion. Regulated bitcoin futures on the CME also approached October 2020 lows. Volumes on the exchange were just $19.5 billion for the month. According to The Block Research, CME open interest on bitcoin futures contracts fell 11.1% to $1.36 billion at the end of December.
Carlos Gonzalez, a research analyst at 21.co, said the decline in trading volume was not limited to the derivatives market, as spot trading volume on centralized exchanges also dropped significantly. Exchange volumes dropped about 47.5% in December to $353.5 billion from $673 billion in November, according to Gonzalez. “The fact that both spot and derivatives trading volumes fell significantly in December suggests a decline in risk appetite for speculation in the market. One possible explanation for this behavior is that the crash of FTX in November led to a lack of trust in centralized exchanges, resulting in lower trading activity,” he said.
Source: The Pipsafe Team – Bitcoin futures trading
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