Bitcoin Derivatives In The Driver’s Seat For $100,000 Rally, Data Shows
Bitcoin derivatives trading volume has surpassed spot trading volume during its recent recovery rally above $100,000. The Bitcoin Trading Volume Ratio, which tracks the trading volume on spot versus derivatives exchanges, has fallen below 1, indicating a dominance of derivatives trading. This trend contrasts with last month’s rally, where the ratio exceeded 1, suggesting spot trades were more influential. Historically, price rallies driven by derivatives activity tend to be unstable, raising concerns about the sustainability of the current rally. Additionally, Ethereum is currently undervalued compared to Bitcoin, as indicated by its low Market Value to Realized Value (MVRV) Ratio. Despite this, factors like supply pressure and weak demand may hinder Ethereum's rebound. Bitcoin's price has recently increased by nearly 3%, surpassing $101,000.
