Key Takeaways
- • Binance Bitcoin futures trading volume has reached about 11 times spot volume, according to a CryptoQuant analysis published November 6.
- • The Binance Bitcoin spot-to-futures volume ratio fell to 9.2%, meaning $9.20 changes hands in spot for every $100 in futures.
- • The ratio has dropped 30.2 percentage points from its May 4 peak of 39.4%, a 76.6% contraction.
- • Bitcoin's price fell about 28%, from near $80,000 in May to $58,000-$59,000 in late June and early July, before recovering.
- • Amr Taha of CryptoQuant says Binance market structure is markedly more derivatives-driven than in May.
Summary
The key metric is the spot-to-futures volume ratio, which measures spot trading activity relative to futures volume. At the current reading of 9.2%, every $100 of Bitcoin traded in futures corresponds to only $9.20 traded in spot. That compares with a ratio of 39.4% on May 4, when Bitcoin traded near $80,000.
The ratio has since fallen 30.2 percentage points from its May peak, a contraction of 76.6%. Over the same period Bitcoin's price declined about 28%, dropping to the $58,000-$59,000 range in late June and early July.
Taha noted that although Bitcoin's price has recovered, trading on Binance remains more concentrated in derivatives than in spot. He said the current market structure is clearly different from the one observed in May, a shift relevant to managers assessing where liquidity and price discovery sit on the exchange.
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