BTC Futures Influence Wanes, Bullish Sign for Crypto Market
CryptoNewsTerminal Staff03 Jul, 2024
BTC Futures Influence Wanes, Bullish Sign for Crypto Market
Ju Gi-yeong, CEO of CryptoQuant, recently observed a decline in the proportion of Bitcoin (BTC) futures in the market. According to Ju, this shift favors a bullish trend for Bitcoin. Historically, BTC futures played a dominant role in market movements, but their influence has diminished compared to the previous bull run. The current ratio of futures trading volume to spot trading volume has dropped by a significant 63% from its peak. This indicates a shift in market dynamics, with spot trading gaining prominence. When spot trading volume surpasses futures volume, it is typically seen as a positive sign for the market. Traders interpret this as a surge in genuine demand for the underlying asset, rather than speculative trading driven by futures contracts. As the market becomes more spot-driven, it suggests increased confidence and a more stable foundation for price appreciation.
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