Derivatives Exchanges See $ 1.69 Billion Ranch Cash Out, Whales Going to OTC Desks?

Derivatives exchanges recorded a massive stablecoin output of $ 1.69 billion in rare cases. A net exit of this magnitude is often viewed as a bearish signal, as analysts believe that traders are moving their stablecoins in anticipation of a possible market correction. Source: CryptoQuant traders often gravitate towards high leverage trading during the bull run, and data previously released by Binance showed that most traders on the platform used the highest leverage option at the peak of the bull run. The current market is in recovery mode after most of the cryptocurrencies recorded a 50% price drop in the first week of May. Bitcoin price is currently trading above 36,000 USD and is trying to break the key USD 40,000 resistance. The best cryptocurrency is struggling to hold its position above $ 40,000, and falling below $ 30,000 could lead to lower price action. Whales complaining to OTC tables? The China FUD has been instrumental in recent sales after reports in the mainstream media that Chinese officials are firmly applying pressure. Although China banned cryptocurrency trading in 2014 and closed all exchanges in the country in 2017, the FUD seems to kick off every bull cycle and cause panic among new investors by selling their assets. The significant outflow of stablecoin from derivative platforms seems to have a Chinese perspective that Chinese whales believe are moving to OTC tables to circumvent current government pressure that has led to a significant derivative platform exit. Recent regulatory guidelines have also warned against the use of derivatives trading, leading a number of popular derivative platforms to cease providing services to Chinese customers recently. Bybit and Binance have taken steps to limit their services to the latest service restrictions offered by derivative platforms for Chinese traders, and with the fact that Chinese whales often turn to OTC tables.

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