Bitcoin Derivatives Trading Volume Surpasses Spot Amid Price Rally
Bitcoin derivatives trading volume has surpassed spot trading volume during its recent recovery rally above $100,000.
Trading Volume Ratio Analysis
- The Bitcoin Trading Volume Ratio indicates the relationship between spot and derivatives trading volumes.
- A ratio below 1 shows greater activity in derivatives trading.
- Currently, this ratio is under 1, suggesting dominance of derivatives volume.
- This trend contrasts with last month's rally, which had a higher ratio indicating strong spot trading support.
- Historically, rallies driven by derivatives trading tend to be unstable.
- There are concerns that the current rally may struggle to sustain itself due to this dominance.
Ethereum Valuation Insights
- On-chain analytics from CryptoQuant indicates Ethereum is undervalued compared to Bitcoin.
- The Ethereum Market Value to Realized Value (MVRV) ratio is low relative to Bitcoin's MVRV ratio.
- Historically, low MVRV for ETH has led to outperformance, but current market conditions may hinder recovery.
Current BTC Price
Bitcoin has increased nearly 3% in the last 24 hours, surpassing the $101,000 level.