I see here that the futures trading volume in the market is skyrocketing compared to the spot market. The ratio has risen to about 5.1x, the highest level since mid-2023. Basically, futures indices are now dominating the game.

This means that most trades are happening with leverage instead of direct buying and selling. When derivatives grow like this while the spot market remains stable, sensitivity to liquidations increases significantly. That’s why recent movements have been intense but short-lived, like what Bitcoin has been doing.

On-chain data reinforce a more cautious scenario. Apparent demand has been negative at -30,800 BTC over the last 30 days, and the supply in loss is growing to levels that historically preceded prolonged declines. Additionally, major exchanges sold a lot during the previous rally while retail was buying the dip. All of this suggests volatility ahead.

Bitcoin is around $73,940 now, down 0.93% in 24 hours but up 2.98% over the week. The question is: with these high futures indices, any move could trigger a cascading liquidation. It’s worth staying alert.