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Bitcoin (BTC) Futures Trading Dominated by Retail Investors: What Does This Mean?

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CryptoQuant Chief Executive Officer Ki Young Ju shares a diagram that outlines how the organization of Bitcoin (BTC) market for derivatives. public

 

Ki Young Ju, CEO and co-founder of the top-of-the-line on-chain analytics tool CryptoQuant explained the significance of the inflows of Bitcoins (BTC) to the major derivatives exchanges. It appears that whales are not trading futures during the final few days in 2021.

Bitcoin (BTC) futures trading volume is derived from retail

The Mr. Ki Young Ju has used Twitter to share graphs showing Bitcoin (BTC) movement among derivative platforms as well as spot exchanges (30-day move average).

$BTC Futures traders today are predominantly retail investors.

The amount that Bitcoin deposit to derivatives exchanges that are not on other exchanges is tiny.

Live Chart https://t.co/N7kJnbw9ks pic.twitter.com/XTicbXmKRm

— Ki Young Ju jugiyeong (@ki_young_ju) December 24, 2021

It seems like the amount of money flowing of derivatives trading platforms is at its lowest since the year 2018. This means that it’s most likely driven by smaller-sized retail investors.

It is usually an effective bearish indicator. In the chart that shows that the Bitcoin (BTC) cost (displayed in a logarithmic scale) enormous whale-driven flows were seen in conjunction with the rise in Bitcoin (BTC) price. Bitcoin (BTC) cost.

The most remarkable circulation of whales’ funds to derivatives exchanges occurred following Black Thursday in Crypto. Whales also injected an enormous amount of money in the third quarter of 2021 in which it was reported that the Bitcoin (BTC) cost increased by three times in just three months.

Do you want to distribute or accumulate?

As stated by U.Today earlier the indicator was in good working order during September of 2021. Since the beginning of September, Bitcoin (BTC) whales have moved their bitcoins to futures exchanges to create new positions or fill the gap.

Additionally, CryptoQuant analysts revealed that certain whales are selling off the Bitcoins (BTC). Therefore, traders must remain vigilant up to the point that Bitcoin (BTC) is worth more than $51,000.

However it is possible that things aren’t so negative in the long run for Bitcoin (BTC) bears. According to Glassnode information the capitulation stage (when Bitcoin price dropped to $42,200) Bitcoin price is pushed up to $42,200) is now over in addition, there is a sign that the Bitcoin indicators for Liquid Supply Change has moved into the zone of bulls.

Additionally is it appears that the “Fear and Greed Index” has been able to leave “Extreme Fear” waters.

 

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