Significant structural changes are occurring in the Bitcoin futures market: CryptoQuant analysts are noting an increased role of retail traders against the backdrop of declining activity from large participants. In recent months, the price of Bitcoin has remained within a narrow price range, despite noticeable activity from institutional investors in accumulating the asset.
This is reported by Finway
Decrease in Average Order Size and Activity
According to data from the analytical platform, the average order size in the Bitcoin futures market has significantly decreased. This metric is calculated as the ratio of total trading volume to the number of trades and allows for assessing who dominates — small or large players. A decrease in this metric indicates a growing influence of small orders, primarily formed by retail traders.
Additionally, the Futures Volume Bubble Map confirms a general decline in trading activity in the market. Experts note that this may be a sign of a cooling phase in the derivatives market.
Bearish Sentiment and Risks for Bitcoin’s Price
Analysts have also pointed out the indicators of the Bitcoin Futures Taker CVD over the past 90 days, which show a predominance of sell orders. This trend indicates a dominance of bearish sentiment among traders: most market participants expect further declines in Bitcoin’s price.
“The Bitcoin futures market is cooling down: the decrease in whale activity and the strengthening role of retail traders are forming bearish sentiments. If whales do not return with demand, the price is likely to remain in a range or face further downward pressure,” CryptoQuant concluded.
Earlier, it was reported about the largest sell-off of Bitcoins by so-called whales since 2022, which has also impacted the current situation in the derivatives market.