• Data analyzed by CryptoSlate showed a strong contrast between Bitcoin and Ethereum Spot to Futures Volume (SFV) trends.
• Bitcoin SFV has oscillated uniformly between 0.2 and 0.4 since January 2020 and broke out of this range last summer, climbing higher to peak at just under 0.7 this week.
• Ethereum SFV print shows a more haphazard pattern, with the ratio of the spot to futures volume recording lower lows since May 2022.
Analysis of data by CryptoSlate revealed a stark contrast between Bitcoin and Ethereum Spot to Futures Volume (SFV) trends. The SFV of Bitcoin has stayed relatively stable in the range of 0.2 to 0.4 since January 2020. However, the SFV rose dramatically over the summer, reaching a peak of just under 0.7 this week. The surge in Bitcoin SFV indicates that retail traders are buying up the cryptocurrency at a greater rate than institutional and experienced, well-financed traders who usually buy derivatives.
On the other hand, the SFV for Ethereum has been more erratic. The ratio of spot to futures volume has been declining since May 2022. This is a departure from the steady and consistent rise in Bitcoin SFV, showing that Ethereum is not as popular among retail buyers.
Spot price refers to the current quote for the immediate purchase of the cryptocurrency and is the basis for all derivatives markets. A strong spot volume is indicative of healthy accumulation and sustained price growth. This explains why the Bitcoin SFV trend is so important; it shows that retail buyers are driving up the price of Bitcoin.
The Ethereum SFV trend, on the other hand, indicates that the coin is not seeing the same level of demand from retail investors. This could be because Ethereum is not as popular among retail buyers as Bitcoin. It could also be because institutional and experienced traders are more likely to invest in Ethereum derivatives.
Overall, the analysis of the spot to futures volume trends of Bitcoin and Ethereum show a stark contrast. Bitcoin is seeing strong demand from retail investors, resulting in a steady rise in the SFV. Ethereum, on the other hand, is not seeing the same level of interest from retail buyers, leading to a decrease in the SFV.