• Data from CryptoSlate shows a stark contrast between Bitcoin and Ethereum Spot to Futures Volume (SFV) trends.
• The Bitcoin SFV has oscillated relatively uniformly between 0.2 and 0.4 since January 2020, but has broken out of this range to peak at just under 0.7 this week.
• This suggests that retail traders are piling into Bitcoin at a rate greater than derivatives traders.
The recent analysis of data from CryptoSlate suggests that retail traders are increasingly piling into Bitcoin at a greater rate than derivatives traders. This is evidenced by the observation of the Bitcoin Spot to Futures Volume (SFV). SFV is a metric that looks at the ratio of spot volume against futures volume for a particular cryptocurrency. Spot volume refers to the current quote for the immediate purchase of the cryptocurrency and forms the basis for all derivatives markets; strong spot volume equates to healthy accumulation, leading to sustainable price growth.
Since January 2020, the Bitcoin SFV has oscillated relatively uniformly between 0.2 and 0.4. However, the SFV has recently broken out of this range, climbing higher to peak at just under 0.7 this week. This suggests that retail traders are piling into Bitcoin at a rate greater than derivatives traders. In contrast, the Ethereum SFV print shows a more haphazard pattern, with the ratio of the spot to futures volume recording lower lows since May 2022.
The rising SFV ratio for Bitcoin indicates that retail investors are continuing to accumulate the cryptocurrency in anticipation of further price growth. This could be seen as a sign of confidence in the future of Bitcoin and may be a key factor in driving its price above the $20,000 mark. It will be interesting to observe if the trend continues, as well as to see if it is enough to propel the price of Bitcoin to further new heights.