CryptoBriefing reported that the leverage scale in the Bitcoin futures market has significantly contracted, with the ratio of futures nominal value to spot value dropping to 0.24x, reaching its lowest level in two years. Futures nominal value refers to the total dollar-denominated size of open futures positions. A decrease in this ratio compared to spot indicates that the relative size of leveraged futures positions is shrinking compared to the past. The media explained, "Bitcoin futures Open Interest (OI) has decreased by approximately 47-55% from its peak, and offshore Bitcoin futures trading activity, in particular, has fallen by about 97% compared to its peak during the 2021 bull market. Even on the Chicago Mercantile Exchange (CME), primarily used by institutional investors, Bitcoin futures OI and trading volume previously dropped to their lowest levels in 14 months. The annualized return of basis trades, which involve buying spot BTC and selling premium futures to secure a price difference, has also shrunk from over 20% in the past to approximately 3-5% recently. Consequently, the actual benefits of leveraged futures trading are assessed to have decreased compared to before."
