Bitcoin Futures Rocket as Bitcoin Fever Takes Hold Again

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  • Bitcoin futures volume rocketed following its huge move this week
  • Bakkt and CME reported huge trade numbers, with Bakkt breaking two records
  • A U.S. Dollar Index collapse could play into Bitcoin’s hands

Bitcoin futures platforms have been seeing record trading volume over the past few days following Bitcoin’s rapid rise over $11,000. Both Bakkt, owned by Intercontinental Exchange, and the Chicago Mercantile Exchange (CME) have reported huge spikes in trading volume this week, with Bakkt setting a new record yesterday. The figures reflect a growing institutional interest in commodities such as gold, silver, and Bitcoin as the dollar continues to struggle for strength.

Bakkt Sets Two New Records

Bitcoin futures contracts on almost all platforms surged following Bitcoin’s run from $9,675 to a yearly high of $11,400 in the space of 48 hours, with volume since Monday swamping the previous month:

Bitcoin Futures Volume

Bakkt, which launched in September 2019 offering physically backed Bitcoin contracts, reported its highest ever figure for Bitcoin monthly futures on Monday with 11,509 contracts, representing an 85 increase over the previous record:

Bakkt Futures volume

Amazingly, Bakkt went one better the following day and broke its record again:

CME Sees $1.3 Billion in Bitcoin Futures Volume

Alongside Bakkt, the CME has also been seeing an upturn in Bitcoin futures contracts following Bitcoin’s stellar move. According to Skew analytics, CME also recorded a surge in Bitcoin futures contracts on Monday, with daily volume hitting $1.3 billion, while open interest, a measure of the total number of open derivative contracts yet to be settled, jumped to $724 million:

CME futures volume

According to CME’s own data, 25,493 Bitcoin futures contracts were traded on Monday with 20,939 traded on Tuesday as Bitcoin hovered around $11,00. Bitcoin itself it holding strong around the $11,000 area, with Bitfinex longs increasing from 25,000 to 30,500 since Monday:

Bitcoin Longs

CBOE Sold the Bottom

At this point, with Bitcoin futures rocketing, one still has to have some sympathy for CBOE who withdrew their Bitcoin futures offering after perpetually low volume in March 2019, right before Bitcoin’s rally to $13,900. Now, with Bitcoin setting the world alight again in the wake of global governments’ response to the coronavirus epidemic, you could make a case that the cessation of their Bitcoin futures platform represents the ultimate selling of the bottom.