Bitcoin (BTC) Futures Trading Is Dominated By Retail Investors: What It Means

Ki Young Ju, CEO and founder of the leading online chain analysis dashboard CryptoQuant, shared the dynamics of Bitcoin (BTC) inflows on major derivatives exchanges. It looks like whales will avoid futures trading for the final days of 2021.

The trading volume of Bitcoin (BTC) futures comes from retail

Mr. Ki Young Ju went to Twitter to share graphs of Bitcoin (BTC) flow between spot exchanges and derivatives trading platforms (30-day moving average).

https://twitter.com/ki_young_ju/status/1474326096242180098?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
It appears that the inflow to derivatives platforms is at its lowest level since 2018. Hence, it is most likely being driven by small retail investors.

Usually this is a reliable bearish indicator. On a chart showing the price of Bitcoin (BTC) (on a logarithmic scale), the massive inflow of capital fueled by whales coincided with the rise in Bitcoin (BTC) price.

The most impressive influx of whales into the derivatives exchanges was recorded in crypto after Black Thursday. Additionally, the whales pumped huge sums of money in the third quarter of 2021 when Bitcoin (BTC) price doubled in three months.

Do you accumulate or distribute?

As previously mentioned by U.Today, this indicator worked perfectly in September 2021. Since the beginning of September, Bitcoin (BTC) whales have been moving funds to futures exchanges to open positions.

In addition, CryptoQuant analysts revealed that some whales are shedding their bitcoin (BTC). Hence, traders should remain vigilant until Bitcoin (BTC) rises above $ 51,000.

At the same time, it may not be that bad for Bitcoin (BTC) bulls. According to Glassnode data, the speculative phase (when the Bitcoin price fell to $ 42,200) has ended and the Bitcoin Liquid Supply Change indicator has entered an upward zone.

In addition, the “Fear and Greed Index” has left the waters of “Extreme Fear”.