Headline: Derivatives, Not Spot Buys, Now Drive Bitcoin’s Price — CoinGlass Bitcoin’s price action is increasingly shaped by derivatives markets rather than spot trading, according to a new CoinGlass report — a structural shift that changes how risk and price discovery travel through the market. What’s changed - Futures, perpetual swaps and options now make up the majority of Bitcoin trading activity, with derivatives volumes running consistently higher than spot volumes — even during big rallies or sell-offs. - CoinGlass finds derivatives turnover has grown to “several multiples” of spot activity, and this pattern has held through rallies, corrections and consolidation phases. Why it matters - Short-term direction is more often set by positioning, leverage and hedging behavior than by outright spot buying or selling. In practice, futures and perpetual contracts increasingly lead price moves, while spot markets tend to follow once momentum is established. - Institutional flows have amplified this shift. As ETFs, macro funds and volatility managers use options and futures for hedging and exposure, large participants can express directional views without touching spot Bitcoin. How that shows up in the market - Market moves can look muted on the surface: price pushes and pullbacks frequently occur without matching spikes in spot volume, driven instead by changes in leverage and derivatives positioning rather than fresh capital flowing into or out of spot. - CoinGlass also documents an unusual mix of elevated open interest and relatively low realised volatility — a sign that risk is being parked in the system (stored), not resolved. That creates an appearance of stability but raises the risk of abrupt adjustments. The risks beneath the calm - When positioning becomes crowded or deleveraging is forced, corrections are more likely to come from funding stress, margin calls and liquidation cascades than from gradual shifts in spot demand. - Major turning points that in past cycles were tied to spot-driven accumulation or capitulation are now more often linked to derivatives dynamics: changes in positioning, options expiry mechanics and leverage resets. Takeaway for traders and investors - As Bitcoin matures into an asset increasingly traded like traditional macro instruments, derivatives metrics matter more for short-term price action. Monitoring open interest, funding rates, futures/perp volumes, options flow and implied volatility is becoming essential alongside spot supply considerations. - Spot markets still matter for long-term supply and ownership, but marginal price moves are now more sensitive to how market participants are positioned and hedged than to simple buy-or-sell pressure in spot markets. Source: CoinGlass Disclaimer: AMBCrypto's content is informational and not investment advice. Trading cryptocurrencies is high risk — do your own research before making decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news

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