Bitcoin Market Dynamics: Spot Selling vs. Futures Buying – What’s Next?
Recent data from Glassnode reveals a striking divergence between Bitcoin’s spot and derivatives markets. While the Cumulative Volume Delta (CVD) for spot trading has been declining for weeks—with only a brief spike in buyer interest last night—the futures market tells a different story. Futures CVD continues to rise, reflecting sustained buying pressure.
Key Observations:
1- Spot Market Weakness:Since Bitcoin reached its all-time high, spot traders have predominantly been selling, signaling caution or profit-taking.
2- Futures Market Strength:Despite the spot sell-off, derivatives traders are accumulating positions, keeping funding rates unusually low.
3- Market Fragility: The lack of spot demand creates a fragile setup. Futures activity alone may not sustain bullish momentum without confirmation from spot buyers.
Why This Matters:
Historically, healthy Bitcoin rallies require participation from both spot and futures markets. The current imbalance suggests that while derivatives traders are optimistic, the absence of spot market support could lead to increased volatility.
Bottom Line: For a stronger recovery, the market needs renewed spot demand. Until then, the structure remains vulnerable.
Stay tuned for further updates as the market evolves.
No financial advice!