Binance Bitcoin volume ratio hits record as futures outweigh spot eight times over

Bitcoin futures-to-spot trading volume ratio (screenshot). Source: CryptoQuant

The record comes after months of retreating investor demand, with the exodus particularly noticeable in the retail trading sector. Previously, Cointelegraph reported that AI stocks have become a key destination for retail capital.

CryptoQuant data shows that on a rolling 30-day basis, both spot and derivatives demand continue to deteriorate, with spot showing a more consistent decline since June. 

BTC/USD has spent the past two months in a narrow range above $60,000, contributing to a lack of interest among spot traders. Traders initiated a major spike in onchain realized losses in February, when Bitcoin first dropped to the $60,000 mark. However, subsequent retests have seen lower volume as both buyers and sellers have become exhausted.

Bitcoin net realized profit/loss data. Source: CryptoQuant

“Bitcoin spot demand is weakening. Futures demand remains net positive, but is significantly lower than during the rebound three months ago,” CEO Ki Young Ju reported in a post on X late last month.

Bitcoin spot vs. futures demand. Source: Ki Young Ju on X.com

Traders position for September BTC price range breakdown

Examining the odds of a Bitcoin price breakout from its local trading range this week, crypto exchange Bitfinex flagged decaying volume across both spot and derivatives markets.

Related: Bitcoin treasury trade ‘breaking’ and fund holdings drop 10%: Analysis

“For now, volumes cluster in the middle of the range and thin out near the extremes. Taker volume especially is a sign that neither side is pushing hard to break the range in either direction,” its analytics arm, Bitfinex Research, wrote in an update.

Bitfinex said that options traders were positioned for rangebound conditions to continue in August, following a 7.4% gain for BTC/USD in July. In September, meanwhile, they expect the range to resolve to the downside, following familiar Bitcoin bear-market behavioral patterns.

“Options traders are effectively pricing in a continuation of the range and, on aggregate, hedging for a downside resolution of it several weeks from now,” it added alongside data from onchain analytics platform Glassnode.

Bitcoin options composite chart. Source: Bitfinex