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Bitcoin traders play a crucial role in shaping the market, their reactions to events and trading strategies can influence the overall sentiment, providing valuable insights and driving market trends.
Q1 2024, the pre-BTC Halving bull run paired with Bitcoin’s ATH and ETF capital inflows have resulted in derivatives trading volumes rising 86.5% to a record high of $6.18 trillion in March, according to analytical firm CCData.
However, according to the same source, March has also marked a decline in the share of crypto derivatives in total market activity which has slipped to 67.8%. Coincidentally, this event has also had a ripple effect on the derivatives market share among the leading crypto exchanges in April.
Cryptocurrency exchange Bitget saw the highest gain of 1.39% among the top 14 derivatives exchanges, followed by OKX with a gain of 0.33%.
Previous leaders in crypto derivatives — Binance and Deribit — saw the highest decline in market share last month, falling by 2.22% and 0.15% to 44.4% and 0.88% respectively. The report highlights a 27.7% fall in Binance’s derivatives trading volumes to $2.03 trillion, leading to a sharp drop in its derivatives market share to 44.4%
Coincidentally, Bitget has reported the number of new derivative trader accounts registered on Bitget in April surged by a record 23%. Of them, 82% opened positions in the BTC-USDT pair. All while the share of BTC’s opened positions in the Bitget futures market remains above 60%.
Previously, in Q1 of 2024, Bitget saw its futures trading volume soar to $1.4 trillion, marking a 146% increase and surpassing other leading exchanges, including Deribit. In March, its market share reached 12.8%, according to CCdata.
In its quarter report, Bitget cited the influx of new derivatives users to be caused by the growing positive sentiment among Bitcoin traders and capital flows into BTC ETFs, as well as the expectation of a reduction in key rates in September.
The outflow of derivatives traders from Binance and Deribit could also play a role in the change in the crypto derivatives leaders. The drop in Binance’s share coincided with the news that its founder and previous CEO, Changpeng Zhao, was sentenced to four months in prison for the violation of U.S. money laundering laws.
According to analytical data from The Block, Bitget has emerged as one of the leaders in Open Interest (OI) share in the crypto derivatives market. Bitget’s OI indicator surpassed $6 billion on May 4, representing 25% of the total market, currently standing at $6.22 billion. The exchange’s total volume of open futures contracts had exceeded the BTC market price level, hinting at traders’ anticipation of a spike in the price of Bitcoin.
Bitget’s growth in the derivatives market share is notable, especially considering that derivatives volumes decreased by 24.1% in April to $4.58 trillion, marking the first decline in three months. The decrease in derivatives trading activity follows the Bitcoin halving event catalyst and the CPI inflation print, which surprised market estimates.
