Bitcoin transactions denominated in US dollars are more concentrated during US trading hours, and the number of open interest contracts for Bitcoin and Ethereum futures on the CME has reached a new all-time high.
Author, Source:Jin10 Data
With the approach of 2025, the focus of the cryptocurrency market has returned to the US, thanks to the re-election of Trump as president and the growing demand for digital asset funds and derivative contracts in the US.
Trump has vowed to make the US a key player in the cryptocurrency industry, which has ignited a trading frenzy, and the unexpected successful launch of US Bitcoin ETFs starting in 2024 has also led to a surge in trading activity.
As a result, the US is becoming increasingly crucial for digital asset liquidity and benchmark pricing, and during part of last year, Asia seemed to be the biggest beneficiary of the Biden administration's crackdown on cryptocurrencies, which Trump is now reversing.
In this historic 12-month period, US demand has helped Bitcoin break through $100,000 for the first time, and the chart below records the changes in the structure of the cryptocurrency market.
Trading Shift
Bitcoin transactions denominated in US dollars are more concentrated during US trading hours
Data from Kaiko shows that the proportion of daily Bitcoin transactions denominated in US dollars conducted during US trading hours has risen from 40% in 2021 to around 53%. Thomas Erdösi, Head of Product at CF Benchmarks, says the increasing institutional participation has led to a "shift in liquidity dominance" towards the US.
ETF Trading Volume
The daily trading volume of US Bitcoin ETFs has exceeded $500 billion
Since the launch of US Bitcoin ETFs in January, the cumulative daily trading volume has exceeded $500 billion, with net inflows of around $36 billion. BlackRock's iShares Bitcoin Trust is one of the most successful funds ever. Under Trump's leadership, the scale of US crypto ETFs is expected to expand beyond the current products limited to Bitcoin and Ethereum.
Futures Demand
Open interest in CME's Bitcoin and Ethereum futures has reached a new all-time high
The open interest in Bitcoin and Ethereum futures hosted by the Chicago Mercantile Exchange Group (CME) headquartered in Chicago has reached a new all-time high this year. CME is currently the market leader in Bitcoin futures open interest, overtaking the previous leader, the offshore platform Binance Holdings Ltd.
Market Depth
Cryptocurrency market liquidity has returned to pre-FTX disaster levels
In 2022, the collapse of the FTX exchange and its sister hedge fund Alameda Research severely damaged liquidity. The optimism generated by US ETFs and Trump has helped to turn the situation around.
Kaiko data shows that the depth of the cryptocurrency market - the ability to absorb relatively large orders without excessively impacting prices - has recovered to pre-FTX crisis levels, making up for most of the so-called "Alameda gap".
