Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Definition
Daily spot market total volume for ETH divided by ETH futures trading volume.
Quick Take
- For a healthy ratio and sustainable price action, it is important to have a high spot-to-futures ratio.
- Throughout 2020 and 2021, Bitcoin hovered around 0.2 – 0.3 spot to futures, which is low, while we were in the bull run supported by the derivatives market.
- However, at the end of 2022, Bitcoin’s ratio hit an all-time high at 0.66 — indicating more spot price action than futures; this has come off in recent weeks but still slightly supports higher spot action.
- Meanwhile, Ethereum has had a low, consistent ratio which shows it is being supported by the futures market considerably.
- Ethereum is currently at 0.16 — almost at an all-time low — which is not healthy or sustainable for price action.
BTC spot to futures volume: (Source: The Block)
ETH spot to futures volume: (Source: The Block)
The post Stark contrast of spot-to-futures ratio between Bitcoin and Ethereum appeared first on CryptoSlate.
Publication date
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.