The ratio of market buy to sell orders across major crypto exchanges has surged to 1.17, marking the highest level observed since early 2023, according to data compiled by CryptoQuant. This indicator closely monitors aggressive market buying against selling within the perpetual futures market. A reading above 1 signifies dominant buyer activity. The notable spike recorded on December 2 represented the most significant single-day shift toward increased demand in nearly two years.
Experts suggest that this pattern commonly emerges during the initial phases of market expansion. During these periods, structural demand tends to increase, and liquidity conditions begin to improve.
Institutional Investment and Liquidity Trends Bolster the Bullish Outlook
In addition to technical indicators, analysts highlight a significant fundamental development: Vanguard's policy change enabling ETF trading access for over 50 million clients. This strategic move is anticipated to further accelerate institutional participation, which is recognized as a primary driver of long-term market expansion.
Broader macroeconomic indicators align with this optimistic narrative. Analysts report that various stress metrics have declined to their lowest points, indicating a transition from a period of market stress to a phase of liquidity recovery. Historically, such transitions often precede extended periods of Bitcoin growth.
CryptoQuant elaborated on these findings:
“Taken together, these data suggest that the current bullish cycle is likely far from over. The adoption of ETFs, renewed institutional participation, and early liquidity reversal all point toward further expansion, not exhaustion.”
Despite the positive signals, analysts advise investors to remain vigilant regarding macroeconomic risks. Developments in Japan, in particular, are noted as a potential source of market disruption due to ongoing economic uncertainty.
Previous analyses also underscored the impact of rising retail interest and robust Binance reserves, suggesting that the market might be approaching a structural bottom. This adds another layer of support to the prevailing bullish outlook.