– Only a few traders had open contracts based on the funding rate and open interest.
– There is only a little discrepancy between the futures market and the BTC directional bias.
There is no doubt that the Bitcoin [BTC] stopover around $30,000 has been fueled by increased demand in the market. Needless to say, some of the major drivers of the price action include the supply and demand dynamics, investor sentiment, and macroeconomic conditions.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
But at the same time, the interplay between the spot market and activities in the derivatives market are also subjects of intense speculation for BTC.
In quick summary, traders engage in spot for immediate delivery of a transaction settlement in the underlying asset. In contrast, the derivatives market consists of instruments, including options, futures, and swaps that derive their value from the said asset without actual ownership.
Do traders now love tranquility?
But in times past, the futures market has had more influence on the Bitcoin price action than the spot demand. However, recent data, according to CentralCrypto, noted that the opposite was the case.
According to the analyst’s opinion posted on CryptoQuant, the futures market leverage over BTC had substantially drowned. Instead, the cumulative delta signal showed that the spot activity was driving the mome
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Author: Victor Olanrewaju
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