Bitcoin Futures volume on Bakkt rises again – Bullish signal?

  • The volume of Bitcoin Futures contracts traded on the Exchange Bakkt continues to rise.
  • The day before yesterday, the volume rose to 1061 contracts traded, almost reaching its all-time high.

Many investors in the industry saw the launch of Bitcoin Futures financial products on Bakkt as a new opportunity for fresh capital to flow into the market and for Bitcoin and other cryptocurrencies to rise over the long term. However, futures trading initially started with small volumes, but more and more institutional investors are entering the market, so two days ago the volume rose again.

Volume on Bakkt rises again

The all-time high of the daily Bitcoin Futures contracts was reached on October 25, 2019 and amounted to 1183. The Twitter Bot of Bakkt announced that the volume rose to 1061 contracts on Tuesday and thus by 96% compared to the lecture.

The previous trend shows a slow but steady upward trend. The CEO of Bakkt explained before the official launch of the Bitcoin Futures contracts that many large investors will observe the market and the development at the beginning and only enter later.

Over the weekend, Bakkt reached the USD 1 million mark of Open Interest. Open interest is the sum of all open positions in a futures or options contract. Compared to the Bitcoin exchange BitMEX, however, this volume is still small, as BitMEX has already had volumes of over one billion USD.

Positive Momentum?

Since the Bitcoin price rose from USD 7,500 to USD 9,500 on October 24, 2019, the price has fluctuated between USD 9,500 and USD 9,000.

As we reported earlier, net corporate long positions rose from 660 BTC last week to 870 BTC this week. The analyst firm Skew Markets, which provides market data for Bitcoin and Ethereum derivatives, shows this development in a recent chart. Furthermore, 50% of the open interest will expire in December and could cause large movements in the market.

Experienced Bitcoin traders like Josh Rager are also bullish, but it remains to be seen in which direction the Bitcoin course will move. On December 09, 2019 the Bitcoin option contracts start on Bakkt. Option contracts are another financial instrument used to reduce the price risk.

It is expected that above all institutions with large amounts of capital will enter the market, as their capital investment can be better hedged by option contracts. It remains to be seen whether Bitcoin will manage to break out of the current range and break the USD 10,000 barrier again.

Connect with Collin Brown on X (Twitter) for valuable market insights and frequent updates!
Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.

About Author

Collin is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Collin endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Collin's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Collin's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Collin continues to be a driving force in the cryptocurrency community.

Comments are closed.