Summary
- Binance said Bitcoin futures trading volume has reached about 11 times spot volume, while the spot-to-futures volume ratio has fallen to 9.2%.
- The Bitcoin spot-to-futures volume ratio has fallen 30.2 percentage points from its May peak, shrinking 76.6%, while Bitcoin’s price dropped about 28% over that period.
- Taha said that even though Bitcoin prices have recovered, trading activity on Binance is more concentrated in derivatives than spot, showing the current market structure is markedly different from May.
Forecast Trend Report by Period
Bitcoin trading on Binance is increasingly concentrated in the futures market rather than the spot market, according to an analysis. Futures volume is now about 11 times spot volume.
Amr Taha wrote in a CryptoQuant Quicktake on November 6 that Binance’s Bitcoin spot-to-futures volume ratio had fallen to 9.2%.
The metric shows how much spot trading is taking place relative to futures volume. At the current reading, when $100 worth of Bitcoin is traded in the futures market, just $9.20 is traded in the spot market.
The ratio rose to 39.4% on May 4. Bitcoin was trading near $80,000 at the time, but later fell about 28% to $58,000 to $59,000 in late June and early July.
The spot-to-futures volume ratio has dropped 30.2 percentage points from its May peak, shrinking 76.6%.
Taha said that despite Bitcoin’s price recovery, trading activity on Binance remains more concentrated in derivatives than in spot. He added that the current market structure is clearly different from that seen in May.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.