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Bakkt’s volumes up 6,250% since launch, futures data bullish for Bitcoin Bakkt’s volumes up 6,250% since launch, futures data bullish for Bitcoin
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Bakkt’s volumes up 6,250% since launch, futures data bullish for Bitcoin

Bakkt’s volumes up 6,250% since launch, futures data bullish for Bitcoin

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Bakkt, the marketโ€™s first physically-settled Bitcoin futures offering, has posted another record day in trade volume on its monthly contract and is now an order of magnitude away from the volumes of its cash-settled competitor at CME Group.

Intercontinental Exchange-owned Bakkt announced that with 4,443 BTC contracts traded, Wednesday was its biggest day yet, posting a 60 percent increase in trade volume from Friday, the contractโ€™s previous all-time-high in terms of the number of contracts traded in a single day.

Closing in on CME

The news is a remarkable U-turn given the platformโ€™s lackluster volumes at launch two months agoโ€”Bakktโ€™s first day saw just 72 BTC contracts change hands, 75 times less volume than that of CMEโ€™s debut day in December 2017.

If Bakkt can keep up its current momentum and average 4,000 contracts per day, the platform will be trading roughly 16 percent of CMEโ€™s average daily volume in November (CMEโ€™s November average of 4,768 contracts puts its daily average at 23,840 BTC, with each CME contract representing 5 BTC).

Futures data is bullish for Bitcoin, December crucial month

The recent eruption of volume and open interest in both the Bakkt and CME futures contracts โ€” seen alongside a sharp recovery in the price โ€” is strongly bullish for Bitcoin in the short-term, representing an influx of new long contracts being opened.

December will be a crucial month to gauge whether institutional bulls intend on using Bakkt to hold contracts past expiry to gain exposure to โ€œphysicalโ€ BTC, or whether they are more interested in capitalizing on short-term fluctuations in price.

Traders that are currently in long positions may opt to profit on short-term hikes in price and sell before contract expiry, the point at which they would take possession of โ€œphysicalโ€ BTC.

Bitcoin Market Data

At the time of press 2:45 am UTC on Mar. 20, 2020, Bitcoin is ranked #1 by market cap and the price is down 1.08% over the past 24 hours. Bitcoin has a market capitalization of $135.17 billion with a 24-hour trading volume of $18.89 billion. Learn more about Bitcoin ›

Bitcoin

2:45 am UTC on Mar. 20, 2020

$7,479.29

-1.08%
Crypto Market Summary

At the time of press 2:45 am UTC on Mar. 20, 2020, the total crypto market is valued at at $203.45 billion with a 24-hour volume of $64.86 billion. Bitcoin dominance is currently at 66.44%. Learn more about the crypto market ›

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