Bitcoin (BTC) derivatives trading volumes are now nearly eight times higher than spot markets on Binance.
Key points:
- Bitcoin daily spot trading volumes on Binance are diverging from futures more than ever.
- Spot demand has declined in recent months, while futures demand is still net positive, per data from CryptoQuant.
- Options traders are hedging for downside in September after months of rangebound BTC price action.
Binance sees record split in Bitcoin spot vs. futures trading
Data from onchain analytics platform CryptoQuant released on Friday reveals record readings for Bitcoin futures-to-spot trading volume ratios. The ratio now stands at 7.82, meaning that futures volume outweighs spot nearly eight times over.
Daily futures volume on Binance hit $57.82 billion this week, while spot trailed at $6.08 billion.
“Meanwhile, Bitcoin is trading near $64,000, while futures trading volume continues to grow at a faster pace than spot trading volume,” CryptoQuant contributing analyst Arab Chain commented on the data.
“This trend reflects a shift in market activity, with more investors and traders preferring to use futures for leverage, risk management, and short-term trading strategies.”
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.
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“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