- Spot Bitcoin trading volume is dominated by top exchanges like Binance, Bybit, OKX and Coinbase, with Binance accounting for over 35% alone.
- Coinbase has seen declining trading volumes from both retail and institutional investors over the past year. In Q3 2022, retail traded $4.2B while institutions traded $24.7B.
- CME Bitcoin futures open interest reached $4.55 billion in November 2022, accounting for 25% of total BTC futures open interest. Institutional interest in crypto overall appears to be growing.
Spot Bitcoin Trading Dominated by Top Exchanges
Binance, Bybit, OKX and Coinbase account for over 60% of spot BTC trading volume. Binance alone accounts for over 35%. The average BTC order size has decreased, but this doesn’t necessarily mean retail traders are driving the market.
Declining Trading Volumes on Coinbase
Coinbase has seen declining volume over the past year among both retail and institutional traders. In Q3 2023, retail traded $4.2 billion while institutions traded $24.7 billion on the exchange.
CME Bitcoin Futures Surge
CME Group’s bitcoin futures open interest reached $4.55 billion in November 2023. This accounts for 25% of total BTC futures open interest. Asset managers hold a net long position while leveraged funds remain net short overall.
Institutional Interest in Crypto Growing
Institutional investors are becoming more active in crypto, with CME reporting record numbers of large open interest holders in November. The futures curve also suggests bullish sentiment among institutions.
Bitcoin Price Outlook for 2024
Consumer interest and BTC price have decoupled recently. This suggests institutional investors may be having an outsized impact. Approval of a spot BTC ETF could result in some profit taking. The market will likely shift focus to the halving in April 2024 after any ETF announcement.
