While Bitcoin price struggles to reach the $9,000 mark, Bakkt Bitcoin Futures have hit a new all-time high (ATH) 0wing to institutions taking long positions on Bitcoin via other regulated contracts.
Will Bitcoin Dip Below $8,000?
Speculations are rife that Bitcoin will further drop to the $8000 range. Interestingly, the price drop has brought in some positive developments for the Bakkt platform.
As per a recent tweet by Bakkt Volume Bot, leading derivatives market data provider reported that Bakkt saw 1,741 BTC worth contracts being traded on Friday. This converts to $15.5 million and has been Bakkt’s largest trading day in a span of 2.5 months.
Source- Bakkt Bot
While a daily average of $15.5 million is not groundbreaking, it is indeed a big development for Bakkt. It is likely that with time the latter will manage to establish trades worth hundreds of millions in a day. However, the fact that Bakkt Bitcoin futures are undergoing steady growth makes up for an interesting case.
Leading Derivatives Exchange Record High Volume
The primary reason being Bakkt’s high volume is that institutions are starting to build long positions of Bitcoin through other regulated contracts. A few days back Chicago Mercantile Exchange’s Bitcoin futures market hit a one-month high. Contracts worth 1,300 BTC were traded. As a matter of fact, the numbers of contracts being traded are up by 5x from the 250 BTC bottom noted in late September.
Institutional interest in CME Futures saw a spike from 2,873 contracts in Q3 2018 to 5169 open contracts as of Nov. 4. Long BTC futures, in particular,