Part 1 Beginner Why long-term crypto holders borrow against assets instead of selling A strategic guide to liquidity management, capital preservation, and the real tradeoff between selling and borrowing crypto Open guide 
Stark contrast of spot-to-futures ratio between Bitcoin and Ethereum
Ethereum is approaching an all-time low spot-to-futures ratio.
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Definition
Daily spot market total volume for ETH divided by ETH futures trading volume.
Quick Take
- For a healthy ratio and sustainable price action, it is important to have a high spot-to-futures ratio.
- Throughout 2020 and 2021, Bitcoin hovered around 0.2 – 0.3 spot to futures, which is low, while we were in the bull run supported by the derivatives market.
- However, at the end of 2022, Bitcoin's ratio hit an all-time high at 0.66 — indicating more spot price action than futures; this has come off in recent weeks but still slightly supports higher spot action.
- Meanwhile, Ethereum has had a low, consistent ratio which shows it is being supported by the futures market considerably.
- Ethereum is currently at 0.16 — almost at an all-time low — which is not healthy or sustainable for price action.
