Comparing Bitcoin’s spot and derivatives markets in Q1 2023

Quick Take

• As Q1 has ended with a remarkable Bitcoin performance of over 70%, it is worth analyzing the spot vs. derivatives trend over Q1.
• The network is much healthier at the end of the quarter than when we started back in January.
• The exchange balance is now flat year-to-date, with roughly 2.28 million Bitcoin on exchanges, and demand started to return after the SVB collapse.
• Futures’ open interest is now at a one-year low, with roughly 300,000 Bitcoin liquidated from the 2022 peak in October.
• Last, options open interest saw a record-breaking amount of $4 billion worth of options expiring on March 31. Roughly 130,000 Bitcoin have been unwound in contracts from the exchange Deribit.
• The rally in Bitcoin price has been driven by spot demand in recent weeks.