Binance Futures Report: Bitcoin miners’ income dropped 48% after halving, and Bitcoin open interest hit a new high

Original title: "May Trading Report: How does Bitcoin halving affect the market and miners?"

According to the latest trading report from Binance Futures, Bitcoin miners are experiencing the full impact of cyclical supply reductions after the third halving, with revenues falling by 48%.

Bitcoin still performs well despite narrow trading range

Bitcoin’s much-anticipated halving event has had a strange effect on its price, which has stabilized in a range of $8,000 to $10,000, which is relatively narrow compared to previous months.

On average, Binance Futures’ perpetual contracts delivered positive returns to investors in May. BTCUSDT was the most popular contract, with a return of 11.8%. Among Altcoin contracts, ADAUSDT recorded the highest gain of the month, with a return of 58%.

Other altcoin contracts such as ETHUSDT also saw a significant increase in market value, up 16.6% to $240 per contract. Overall, most altcoin perpetual contracts showed positive performance in May, with the exception of BCHUSDT, XRPUSDT, EOSUSDT, and DASHUSDT.

While it is not certain that Bitcoin is in a bull market, it is important to emphasize that it took several months for the price to breakout in past halving events. Therefore, Bitcoin still has time to increase in value and hit new highs for the year. Looking back, this current retracement is almost identical to the halving events in 2012 and 2016, when Bitcoin retraced 1.8% and 13.8%, respectively.

Open interest after halving recovers and exceeds previous highs

Just days before the Bitcoin halving, the price plunged by more than 15% in a single day, triggering liquidations on major trading platforms. The open interest of Binance Futures BTCUSDT contracts dropped from 379 million to 220 million.

May Daily Open Interest

Since the halving, open interest on Binance Futures has recovered to pre-halving levels. As of May 31, total open interest on Binance Futures perpetual contracts was $500 million, indicating increased inflows as traders anticipate more volatility ahead.

Total open interest of BTC futures on major trading platforms

Likewise, despite the price being in a tight range, open interest on major trading platforms has gradually grown after Bitcoin’s third halving. This observation suggests that traders are accumulating positions in anticipation of a big move in Bitcoin.

Is this the beginning of a Bitcoin bull run?

At press time, Bitcoin has just breached the $10,000 mark, sparking a broad rally across the cryptocurrency market. Considering that the $10,000 level is a long-term psychological resistance for Bitcoin, the recent breakout and price increase could indicate a short-lived fomo. Given that Bitcoin’s supply has already been cut in half, any excess demand (to cover shorts or momentum buying) could push prices further up.

The major altcoin markets responded to Bitcoin’s surge in a similar manner, with ETH, BCH and LTC breaking new highs. As a result, the total cryptocurrency market capitalization now exceeds $285 billion, with Bitcoin’s share continuing to grow to 65.9%.

Historically, the $10,000 mark has been a huge psychological barrier for investors as prices have struggled to stay above $10,000 for long. The recent breakout is a milestone for Bitcoin as its much-anticipated bull run is within reach. If prices remain above $10,000 steadily, indicating increased demand and more capital inflows, then a Bitcoin bull run could be just around the corner.

Original link: https://www.binance.com