Bitcoin’s market structure has shifted decisively toward leverage, with derivatives now overwhelmingly accounting for the majority of daily trading volume.
Data from CryptoQuant showed that the derivatives market consistently comprised over 90% of Bitcoin’s total trading activity in 2025, pushing the average derivative-to-spot volume ratio to 13.2x YTD. This ratio peaked at 16.6× on May 6, the same day Bitcoin closed near $96,800.
The shift towards derivatives accelerated sharply in March and April. As Bitcoin’s price bottomed around $80,000 in late March and began climbing again in April, derivative flow increased while spot activity remained weak.
The biggest difference in volume came on Apr. 7, when derivatives hit a daily record of over 1.26 million BTC, even as spot volume failed to reach 30,000 BTC. On most days since mid-February, spot turnover has remained well below that level.
This aligns with previous CryptoSlate reports, which found that the price recovery we’ve seen since February wasn’t driven by fresh inflows or strong retail demand on exchanges.
The data shows a clear inverse relationship between leverage intensity and price strength. The correlation between the daily derivative-to-spot ratio and BTC’s spot price stands at –0.40 YTD, meaning that periods of heavier derivative dominance generally align with weaker price performance.
This trend has appeared repeatedly throughout the year: in March and April, derivatives accounted for over 95% of the total volume multiple times, following local tops and retracements in Bitcoin’s price.
During Bitcoin’s push above $100,000 in January, spot volumes occasionally surpassed 100,000 BTC, including a Jan. 20 spike that paired high spot participation with a local price peak. Since then, such strong spot volume has vanished. In April and May, even as prices approached earlier highs, spot volumes remained tepid, seldom exceeding 20,000 BTC per day.
Aggregate volume data reinforces this view. Between Jan. 1 and May 6, total spot trading reached just 4.15 million BTC, compared to over 50.5 million BTC in derivative volume. Futures markets have thus absorbed more than 92% of Bitcoin’s daily turnover across the year.
The steady rise in the derivative/spot ratio, from 11.27× in January to 13.77× in May, reflects this market transformation into a leverage-driven structure. While volatility has declined since March, the rising ratio indicates continued reliance on margin and futures products for directional bets.
This kind of structural imbalance raises significant risks. When spot liquidity thins, price discovery becomes more sensitive to leverage positioning, and funding rates or liquidation cascades can move the market much more than actual flows. Thin order books on exchanges mean that even small sell pressure can slip prices rapidly, particularly when the prevailing trade is crowded into one side of the futures curve.
The lack of spot conviction could limit the upside for Bitcoin unless ETF inflows or large-scale on-chain accumulation resume. So far, spot market behavior suggests most demand is synthetic, with little real buying pressure visible on exchanges.
Until spot flow begins to accompany price strength, the market remains fragile: highly reactive but underpinned by exposure, not conviction.
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