As cryptocurrency market recovers, open interest and spot trading volume are rising
According to the data provided by co-founder of on-chain analytics service Glassnode, the Bitcoin spot market pair was the powerhouse of the cryptocurrency’s first rally to $45,000, despite the belief that derivatives were dominating the market.
The provided spot-to-derivative ratio saw a significant drop to the value of 1.00, which shows a full correlation between the spot and derivatives markets. But in that event, the data might be inaccurate due to the large purchasing volume provided by one actor only.
Previously, the Luna Foundation announced that it would buy $125 million worth of BTC every day without disclosing the direct method of acquiring funds. Most likely, large transactions will be concluded via OTC transactions to avoid affecting the level of liquidity in the market.
The derivatives market, on the other hand, still affects spot cryptocurrency assets like Ethereum, as the market recently saw a spike in the trading volume of such derivatives as options and futures.
Bitcoin Market Performance
As trading volume increases, Bitcoin is once again hitting a major resistance point and is now merging at the upper boundary of the range formed since February. But according to the current price action, digital gold is struggling to break above the upper boundary of the range and remains below $45,000.
The main reason behind the slowed pace is the lack of buying power and trading volume in general. During each weekend trading session, the market’s trading volume is significantly lower compared to regular trading days, when both cryptocurrency and stock markets are open.
At press time, Bitcoin is trading at $44,462 and has yet to break or retract the aforementioned resistance line.
