Crypto Derivatives Wipeout Sparks Bear Market Fears

Bear market fears are on the rise after $1.5 billion vanished from Binance derivatives in one session.

The drop occurred while the Federal Reserve held interest rates at 3.75%, and Amr Taha flagged a reset on CryptoQuant shortly after, which led to traders unwinding open positions.

BTC open interest on Binance fell by 18% from $4.51 billion to $3.7 billion, while Ethereum's open interest plummeted by 25% to around $2.1 billion, similar to levels seen in late February.

The collapse was not isolated to one venue as risk appetite shrunk across major bitcoin price derivatives venues in a short window.