Active market participation share on CME at all-time lows
Active market participation share on CME at all-time lows![Ahead of the curve - March 7](https://images.ctfassets.net/i0qyt2j9snzb/51Qp3sqexHGcswvL1cxn51/5339d4c0b31995b14a462d68a0c7b081/Ahead_of_the_curve__2_.jpg?fm=avif)
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In Short
In this report, we find clear indications that active institutional traders played a significant role in the March 3 sell-off. CME's open interest fell substantially on elevated volumes amidst the sell-off. In the aftermath, the OI contribution by active market participants on CME has fallen to an all-time low. The coming week is filled with hearings and potential macro releases, setting the stage for a volatile week.
Takeaways
- Bitcoin is down 5% after the midnight sell-off on March 3
- Institutional participation falls to a sudden all-time low following the sell-off
- WBTC supply falls toward 2-year lows
BTC has fallen 5% this week, with all downside originating from a late Thursday/early Friday sell-off, after U.S. market hours. The rest of the week saw virtually no volatility, and the market has since been eerily quiet.