The prevailing narrative attributing Bitcoin’s recent price stagnation to spot Exchange-Traded Fund (ETF) flows may be overlooking a more influential factor: the vast and complex derivatives market. While attention often fixates on ETF performance, a deeper analysis suggests that futures trading, despite a recent cooling, continues to exert dominant control over Bitcoin’s price action and volatility.
This critical insight comes from CryptoQuant analyst Darkfost, who highlights a substantial reduction in Bitcoin futures volumes. Since November 22nd, daily futures trading has reportedly halved, plummeting from $123 billion to approximately $63 billion.
Derivatives: The Unseen Hand in Bitcoin’s Stagnation
The discernible slowdown in derivatives activity offers a partial explanation for the diminished volatility observed in Bitcoin’s price over recent weeks. However, the sheer scale of the futures market underscores its enduring
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