Bitcoin rallied above $30,000 after a hard sell in May. This rise was driven by increased interest and speculation from both retail and institutional investors, as well as positive news from the US market.
Kaiko, a cryptocurrency analysis platform, examined the reasons for the last rally.
According to Kaiko, a cryptocurrency analytics platform, open interest in Bitcoin futures contracts recently reached its highest level since January, indicating an increase in entries and predictions for the future price of Bitcoin.
However, the rally does not appear to be due to a clear dominance of either the spot or derivatives markets, as the ratio of spot volume to futures volume has been mostly flat since April.
Another interesting trend Kaiko has observed is that Binance's share of Bitcoin spot volume has decreased compared to Coinbase, a US-based exchange.
This may be due to legal issues Binance has with regulatory bodies around the world, primarily the US Securities and Exchange Commission (SEC). Kaiko suggests that Coinbase may be leading the spot market movements since early June.
Another interesting data point that Kaiko underlines is that the ratio of Bitcoin to altcoin volumes on US exchanges is now almost 50%. This means that half of the trading volume on US platforms is reserved for Bitcoin, while the other half is split among thousands of alternative cryptocurrencies. For offshore exchanges, the rate is only 33%, indicating that Bitcoin is less preferred among non-US traders.
Kaiko believes that this rally is unequivocally US-led in the Bitcoin market, and one of the main catalysts for this is the recent news that the world's largest asset manager Blackrock has started trading Bitcoin futures on the Chicago Mercantile Exchange (CME).
*Not investment advice.