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.

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Collin Brown

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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