The price of Bitcoin is no longer determined by on-chain activity, but by derivatives
There is a significant shift occurring in the way Bitcoin markets operate:
Most trading is now taking place off-chain.
📊 Key Information:
The trading volume in the spot market, futures, and options on centralized exchanges is now 7 to 16 times higher than the actual settlement volume on the Bitcoin network.
💡 Why This Matters:
Price determination is increasingly relying on derivatives markets, rather than on organic on-chain transactions. This means:
Price volatility may be greater due to leveraged positions.
On-chain data is no longer a reliable indicator of short-term price movements.
Whale behavior in futures and options is more influential than ever before.
The market structure has evolved — understanding these changes is crucial for traders and analysts in this cycle.
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