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Bitcoin turns futures-heavy as spot demand stays weak
Bitcoin is currently in a regime where futures dominance is heavy compared to spot volumes. The ratio on Binance, the platform that records the largest spot and futures volumes, is around 0.12 right now. This means this market phase on Bitcoin is nearly 90% dominated by futures volumes. In other words, for every $1 invested in spot, $9 are deployed on futures, which is a considerable gap. Even though open interest is currently declining, having dropped on Binance from $10.6B to $9.2B over the course of a week, spot demand remains weak, which prevents the ratio from improving. It's true that bullish phases are often triggered by a return of speculation, which is the spark that lights the fuse before the move also becomes supported by spot demand. Right now, that spot demand remains the missing piece, and without it, this rebound driven mostly by futures could quickly become unstable.