CryptoQuant, a leading on-chain data and analytics provider, tweeted that the Bitcoin market is heating up, with the transfer volume increasing by 153% in the last 24 hours. This surge in transfer volume could be a sign of renewed interest in Bitcoin and could signify a potential shift in the market.
Onchain Edge, a prominent cryptocurrency analytics firm, has highlighted two significant metrics that have changed over the past 24 hours. The taker buy-sell ratio in the BTC derivatives market has shifted in favour of buying, indicating increased demand for BTC derivatives and bullish sentiment in the market.
The total number of coins transferred has also significantly increased, a sign of high activity levels in the Bitcoin network and renewed interest in BTC.
The total number of active wallets used to send and receive coins has also increased, indicating the growing bullish sentiment in the market. These metrics suggest that investors should monitor the market as a potential shift may unfold.
In addition, Glassnode, another leading on-chain data provider, has reported that the Bitcoin Fear and Greed Index has recently entered the greed territory. It is a positive sign for Bitcoin as it could mean that the rally will continue, pushing Bitcoin into extreme greed, like what happened in 2019 and 2021.
However, it could also be overwhelmed by resistance, like what happened in March 2020 or during the 2022 deleveraging.
However, these metrics suggest that the Bitcoin market is heating up, and investors should keep a close eye on the market to identify any potential shifts.
Bitcoin’s Spot-to-Derivatives Volume Ratio Reaches 11-Month Low
Meanwhile, another latest report revealed that Bitcoin’s spot-to-derivatives volume ratio had reached an 11-month low, dropping by almost 80% in just three months. The low ratio of 0.117, last seen on May 16, 2022, indicates a renewed speculative activity in the cryptocurrency market, suggesting a potential for price volatility.
This decline comes in the wake of a 70% year-to-date increase in the value of Bitcoin, with investors opting for higher-leverage products.
Matrixport head of research and strategy, Markus Thielen, noted that while some analysts believe the rally is driven by diversification out of the USD, the current situation suggests otherwise.
With the regulatory takeover of banks such as Silvergate and Signature Bank, the on-ramp from fiat to crypto has become more challenging, leading to a reallocation of liquidity to higher-leverage products.
The spot market refers to trading financial instruments for immediate delivery, while derivatives involve contracts for future delivery and magnify both profits and losses.
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