Bitcoin's Spot-to-Derivatives Trading Volume Ratio Slides to Lowest in 11 Months
The ratio between bitcoin's (BTC) daily trading volumes in spot and derivatives markets has slipped to an 11-month low, signaling renewed speculative activity in the crypto market. The ratio has tanked by nearly 80% in three months, reaching a low of 0.117, the level last seen on May 16, 2022, according to data tracked by South Korea-based blockchain analytics firm CryptoQuant. The decline comes amid a 70% year-to-date rise in bitcoin's price.
The slide has been quite sharp since bitcoin first ran into crucial resistance above $28,500 on March 21. It shows speculators have recently piled into bitcoin at a faster rate relative to retail investors and long-term holders. "The theory that the 2023 crypto rally is driven by a diversification out of the USD and the associated bank credit risk might be standing on weak ground if the rally was indeed purely driven by an increase in leverage," Markus Thielen, head of research and strategy at Matrixport, said, noting the decline in the volume ratio.
Source
https://t.me/Crypto_Futures_Trading
