Open Interest and Spot Trading Volumes Are Increasing as the Cryptocurrency Market Improves
according to statistics gave By the co-founder of the Glassnode on-chain analytics service, the bitcoin spot market pair was the locomotive of the first cryptocurrency’s rally to $45,000, despite the belief that derivatives led the market.
The provided spot-to-derivatives ratio saw a significant drop in value to 1.00, indicating a perfect correlation between the spot and derivatives markets. But in that event, the data may be inaccurate due to the large purchase quantity provided by only one actor.
Looks like the move to $44k was due to spot demand. every constant #B T c The bullish move is led by the spot market. pic.twitter.com/b72KYwZVLr
— (@Negentropic_) 26 March 2022
Earlier, the Luna Foundation announced that it would buy $125 million worth of BTC every day without disclosing the direct way it received the funds. Most likely, large deals will be done through over-the-counter trading to avoid affecting the liquidity level on the market.
The derivatives market, on the other hand, still continues to influence spot cryptocurrency assets such as Ethereum, as the market has recently seen an increase in trading volumes for derivatives such as options and futures.
bitcoin market performance
As trading volumes increase, Bitcoin once again reached a key resistance point and is now consolidating at the upper boundary of the range formed since February. But as per the current price action, digital gold is struggling to cross the upper boundary of the range and remains below $45,000.
The main reason behind the slow movement is the lack of purchasing power and trading volume in general. During each weekend trading session, the trading volume of the market is significantly lower than on regular trading days, when both the cryptocurrency and stock markets are open.
At press time, bitcoin is trading at $44,462 and has yet to break through or bounce back from the above resistance line.