Bitcoin futures volume on Binance has surpassed $650 trillion, nearly four times the Spot trading volume.
Much of the current Bitcoin market activity is driven by derivatives trading, raising questions about the sustainability and reliance on speculation in the cryptocurrency market.
MAIN CONTENT
Bitcoin Futures on Binance reached over $650 trillion, far surpassing Spot at $168 trillion.
Derivatives trading accounts for 75% of total volume, the foundation for Bitcoin market breakout and risk.
Volatility is high, be wary of pump & dump and strong short term price correction.
Futures Volume Overwhelms Spot Volume, How Does This Affect the Bitcoin Market?
According to CryptoQuant analyst Darkfrost, Binance has processed over $650 trillion in Bitcoin futures volume since 2019, nearly four times the $168 trillion Spot trading volume during the same period.
This large discrepancy suggests that the futures market is dominating Bitcoin activity, shifting power from physical trading to derivatives, which leaves price movements largely driven by futures traders rather than real investor sentiment.
The dominance of futures in the Bitcoin market marks a new era, when derivatives products are more about trend coordination than actual demand.
Darkfrost, CryptoQuant analyst, 7/2025
What percentage of the futures market share does it have and how does it affect Bitcoin price movements?
During this period, Bitcoin futures trading volume regularly exceeded $75 billion/day, accounting for about 75% of total trading volume.
Bitcoin futures open interest (OI) as of now stands at $36.6 billion, just slightly below last week’s all-time high of $38 billion, indicating that the majority of capital is flowing directly into the derivatives market rather than spot trading.
The increase in OI volume coupled with the decrease in Spot/Futures ratio suggests that investors are relying on leverage and extended positions to create price momentum, rather than genuine demand from the spot market.
CryptoQuant, July 2025 analysis report
Is the current Bitcoin market just a speculative bubble or does it have real growth potential?
The overwhelming share of derivatives trading exposes the Bitcoin market to the risk of fake pumps, where traders manipulate prices to trigger mass liquidations and make quick profits.
However, the current bullish momentum can still be maintained thanks to the continuous participation of experienced speculators and large capital flows, helping Bitcoin price stay above the $100k threshold.
This means growth is possible but comes with high risk due to high volatility, which could send the price down to $105,104 in the short term if market sentiment changes.
How can investors manage risk when trading Bitcoin futures?
Investors need to understand risk management techniques such as setting stop losses, limiting leverage and diversifying portfolios to cope with strong volatility in the Bitcoin derivatives market.
Closely monitoring Open Interest, Spot/Futures ratio and activity on Binance helps to identify early pump/dump risk signals to protect capital safety.
BTC Futures Volume (2019-2025) BTC Spot Volume (2019-2025) % Market Dominance Binance $650 trillion $168 trillion Futures 79%, Spot 21% Other Exchanges Much Lower Share Much Lower Share Futures under 25%, Spot takes the rest
Frequently Asked Questions
What are Bitcoin Futures and Why are they Important?
Futures are contracts to buy/sell Bitcoin in the future at a fixed price, important in creating liquidity and leverage in the cryptocurrency market, helping prices to fluctuate more strongly.
Is most Bitcoin trading today speculative or long-term investment?
About 75% of Bitcoin trading volume is now driven by derivatives trading, which is mostly short-term speculation rather than long-term investment.
What is the biggest risk when trading Bitcoin futures?
High price volatility and the possibility of liquidating positions due to large leverage are big risks, investors need to manage tightly to avoid rapid losses.
Can Bitcoin Price Increase Sustainably If Most Trading Is Just Speculation?
Speculation can create short-term price increases but has the potential to cause large fluctuations. It is necessary to monitor market signals for further assessment.
Source: https://tintucbitcoin.com/bitcoin-co-the-roi-con-105-000-usd/
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