Bitcoin's Spot-to-Derivatives Trading Volume Ratio Slides to Lowest in 11 Months
The decline indicates renewed risk appetite in the crypto market.
I suspect not.
"The theory that the 2023 crypto rally is driven by a diversification out of the USD and the associated bank credit risk might be standing on weak ground if the rally was indeed purely driven by an increase in leverage," Markus Thielen, head of research and strategy at Matrixport, said, noting the decline in the volume ratio.
That's more like it.
"As the on-ramp from fiat into crypto has become materially more difficult with the likes of Silvergate and Signature Bank being taken over by the regulators. This would suggest that the amount of liquidity has remained the same within crypto but has been allocated to higher leverage products," Thielen added.
It's leveraging the volatility. Gambling.
Ratios are never easy to interpret unless one also has the raw numbers. It's not just increased deriv volume, is the spot vol going down or just rising more slowly?
derivatives are like 2nd gen, or even 3rd gen, tokens.
as far away as possible to affect prices without relinquishing the original asset.