Bitcoin Traders are increasing their exposure to Bitcoin on futures trading platform BitMEX. The trading pair is fast approaching its all-time high of $1.22 billion.
BitMEX’s Main Trading Pair Crosses The $1 Billion Mark
BitMEX’s main trading pair – XBT (Bitcoin and USD) has risen by over $250 million in the last 10 days. The pair now has an open-interest of $1.06 Billion. Interestingly, BitMEX has the lion shares of Bitcoin futures trading. Further, futures trading also makes up for 90% of BitMEX’ s daily trading volume.
Spot Trading Volume Continues to Suffer
While Bitcoin continues to soar high, it’s trading volume, unfortunately, doesn’t share the same fate. Larry Cermak, a famous crypto researcher recently revealed how spot trading volume continues to suffer.
He further explained that spot trading volume serves as a lagging indicator of price. This implies that as the prices increase more people start trading and thus the volume goes up. Interestingly, August seems to have a massive discrepancy in the last three years.
If we look at the derivatives volume, the volume on BitMEX, the dominant derivatives exchange, has also witnessed a decrease from $65 billion in July to less than $52 billion in August. The drastic drop in volume can further be attributed to the CFTC probe.
Considering the case of August, Binance managed to secure 55% of traded volume, whereas Coinbase recorded 14% of the volume. Bitfinex was a close second with 9%. While, Kraken, Bitstamp, and Bitflyer noted 8 percent, 7%, and 3 % respectively.
Crypto Community Predicts Rise In Prices
While the open-interest in BitMEX is enough an indication that traders are willing to risk assets on the future of Bitcoin’s price,