digital currency is traded
Recent data shows that in the past month, with the price drop, the share of derivatives markets in the total volume of cryptocurrency transactions reached a peak.
Analyst's Opinion: Crossing $42,000 Is Key to Bitcoin's Rise
According to experts, this change inaction is a sign that traders are trying to make up for previous losses.
According to CryptoGlobe, in January, the volume of cryptocurrency trading in derivatives markets reached $2.86 trillion, pushing the market share of total cryptocurrency trading to an all-time high.
Spot market trading volumes fell 30.2 percent to $1.81 trillion.
Derivatives markets include deals, futures contracts (futures), bargaining agreements (options), and margin (margin). It is a digital currency.
- By assessing the performance of cryptocurrency exchanges, the CryptoCompire Institute found that in January 2022, crypto derivatives markets accounted for 61.2% of the total trading volume.
- Increase your record. Previously, the previous record was the market share of the total trading volume in November 2020 (November), which accounted for 57.3% of the total market.
- According to the report, the increasing volume of transactions in the derivatives markets shows that "in January, investors were more willing to recoup previous losses and make quarterly transactions, and they switched to trading futures and cryptocurrency trading options."
- Despite the increase in the share of derivatives trading, the volume of transactions related to these markets is still below the record of $4.96 trillion set in May 2021 (May).
- In January (December), the exchange office Binance, with a trading volume of $1.5 trillion, accounted for 51.6% of all derivatives market transactions and ranked first in the market. In addition, OKEx, FTX, and By bit exchanges ranked second to fourth with $559, $346 billion, and $219 billion, respectively.
- Last month, daily trading volume in the crypto-exchange derivatives markets peaked on January 21. This was a $181 billion peak, 3.4 percent lower than December's $188 billion peaks.
Market Situation: What caused Bitcoin to jump yesterday?
Trading volumes at high and low exchange bureaus fell by 21.2 and 66.3 percent, respectively, as a result of the drop in spot market activity in January. In the chart below, you can see this size reduction.
The volume of instant transactions on the world's major stock exchanges
The monthly volume of spot transactions for the major exchanges
- The report also adds that the top exchanges now account for 90.3% of the total spot trading volume.
- Meanwhile, the peak daily spot trading volume in January decreased 47.5% from the previous month and reached $91.1 billion.
- Cryptocampire's report shows that despite a decrease in the volume of transactions and spot derivatives, the volume of Bitcoin options contracts on the Chicago
- Mercantile Exchange rose 28.6 percent to 1,882 in January.