Bitcoin, Ethereum, Solana Futures Teases Divergent Trends, Why?

According to on-chain analytics platform Glassnode, the futures volume of top cryptocurrencies, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) show diverging trends.

For context, Bitcoin remains largely unchanged, while Ethereum and Solana have corrected 0.5% and 0.8% in the past seven days.

The ongoing trend in BTC, ETH, and SOL signals mixed market interest, raising discussions about their future price trajectory.

Divergent Trends Seen on Bitcoin, Ethereum, and Solana Futures

The data from Glassnode shows Bitcoin’s futures volume has diverged from that of Ethereum and Solana.

Traders have opened more leveraged positions in Bitcoin pairs compared to ETH and SOL, raising optimism about a possible price swing.

According to the Glassnode data, Bitcoin futures volume began the year at $60 billion.

Over the course of the year, increased market participation saw the volume hit its current yearly peak of $63 billion in February.

However, the recent market uncertainties have reduced traders’ appetite to speculate on Bitcoin’s short-term price actions.

This resulted in a sharp fall to nearly $40 billion. With a changing narrative, traders are back trading the asset, per Glassnode.

Notably, Bitcoin’s volume has increased by 32% from February 23 and now sits at $57 billion. Still, this figure remains well below December’s peak of $74 billion.

Despite Bitcoin’s growing trader interest, futures volume for Ethereum and Solana has remained flat.

To provide context, Ethereum’s derivative volume opened the year at $32 billion and reduced considerably before hitting $31 billion.

Per Glassnode, Ethereum’s futures volume currently stands at $28 billion. This figure is nearly $10 billion away from its peak volume of $37 billion in December.

Similarly, the futures volume for Solana plummeted 29% from its year-to-date high of $12.2 billion to $8.7 billion.

Implications on Price and Market Trends

Notably, leveraged interest in an asset could either drive prices higher or lower depending on traders’ predominant sentiments.

Increased volume equals more market liquidity, which could considerably impact the price of Bitcoin.

Meanwhile, Coinglass shows the long/short ratio on Bitcoin derivatives is neutral to slightly bearish, standing at 0.9964.

Currently, BTC price is traded at $81,558, down 2.37% over the past day and up 1.2% in the last seven days.

Ethereum has decreased by 1.9% on the daily chart to trade at $1,885. SOL price saw the largest decline of the day, with the price dropping by 3.2% to $123.48.

The overall market outlook suggests cautiousness among investors ahead of the Federal Reserve’s policy meeting on March 18 to 29.

Several analysts expect interest rates to remain unchanged at the end of the meeting.

Rebound Expectations, Is the Bull Market Over?

The persistent selling pressure in the crypto market over the past few weeks have raised discussion about the end of the bullish season.

CryptoQuant founder Ki Young Ju has shared his opinion on the current situation on the Bitcoin market.

Young Ju issued a gloomy forecast for the next 6-12 months, stating that the Bitcoin cycle has come to an end. The CEO, therefore, advised traders not to expect any major bullish movements soon.

The CryptoQuant boss shared a chart displaying BTC PnL (Profit and Loss) Index cyclical signals. The chart suggested that bullish hopes for the next Bitcoin movement are unlikely to come true.

On the contrary, analyst Rekt Capital’s forecasted earlier that the current bull run could extend into late 2025. The market will watch to see what the future holds for the broader crypto market.