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Bitcoin: Here’s why BTC might fall to $105K despite all the hype

2025-07-05 15:20:40

Bitcoin: Here’s why BTC might fall to $105K despite all the hype

Main Idea

Bitcoin's market activity is increasingly driven by futures trading, with 75% of its volume being speculative, raising concerns about sustainability and volatility.

Key Points

1. Bitcoin futures volume on Binance has exceeded $650 trillion, surpassing spot volume by $482 trillion.

2. 75% of Bitcoin’s market activity is now derivatives-led, a significant shift from past cycles where spot activity was more dominant.

3. Bitcoin’s Open Interest (OI) rose to $36.6 billion, slightly below the all-time high of $38 billion, indicating heightened speculative activity.

4. The Spot-to-Futures Volume Ratio stands between 0.21 and 0.26, highlighting the dominance of futures trading over spot trading.

5. Analysts note that the current market cycle shows a structural shift, with derivatives dominance surging significantly compared to previous cycles.

Description

Bitcoin futures on Binance has exceeded $650 trillion outpacing spot volume as derivatives dominate.

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