tl;dr
The CEO of CryptoQuant suggests that the recent Bitcoin selling by Grayscale may not be the cause of the latest downtrend. Instead, Bitcoin has been driven by derivatives recently, not spot trading, as evidenced by the "spot vs derivatives trading volume ratio" indicator. The spot vs derivatives tra...
The CEO of CryptoQuant suggests that the recent Bitcoin selling by Grayscale may not be the cause of the latest downtrend. Instead, Bitcoin has been driven by derivatives recently, not spot trading, as evidenced by the "spot vs derivatives trading volume ratio" indicator.
CryptoQuant CEO and founder Ki Young Ju discusses how the derivatives market has been the driving force behind recent price action in BTC, citing the "spot vs derivatives trading volume ratio" indicator. This metric compares the combined trading volumes on all spot and derivative platforms and shows that derivative-based platforms are currently dominant. Recent price discovery has had the futures market play a larger role than spot trading, leading to a significant drawdown for the asset's price despite the recent approval of Bitcoin spot ETFs. However, Bitcoin is in a futures-driven market, less affected by spot selling from Grayscale Bitcoin Trust (GBTC) issues. Although Bitcoin had slipped under the $39,000 mark, the asset has seen a bit of a rebound and is now trading around $40,000 again.
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