Last Week Saw Record Bitcoin Futures Trade on the Cboe
$BTCUSD, $CBOE, $CME, $XBT
The popularity of trading bitcoin futures contracts (XBT) continues to mark new highs. Last Wednesday, CBOE, the dominant US derivatives exchange providing Bitcoin futures contracts, saw its highest-ever trading volume for Bitcoin futures since the launch of trading in December 2017,
A total of 19,000 Bitcoin futures contracts belonging to different expiry dates exchanged hands on CBOE Wednesday.
Some 18,210 Bitcoin futures were traded for the next month May expiry, another 703 that exchanged hands belonged to the mid-month June expiry cycle, while the rest 87 were of the far month July expiry.
No contracts belonging to August expiry were traded Wednesday.
Wednesday’s record volume was 3X higher than the average daily trading volume (ADTV) of 6,600 XBT Bitcoin Futures.
Since ADTV indicates liquidity, it has an indirect impact on the price of the security. Thinly traded instruments are usually avoided by the active traders. Increasing ADTV indicates more market participants are interested in trading the security, leading to tighter spreads and better price discovery.
Wednesday’s actionbroke the earlier CBOE record of 15,500 Bitcoin futures contracts traded on 17 January, and the recent activity is indicative of increasing market participation in Bitcoin futures.
In particular, Cboe reported that last week saw increased trading in XBT. A total of 3,881 contracts were traded Monday. The volume increased to 6,653 Tuesday, followed by the record-breaking streak Wednesday.
Trading on CME (NASDAQ:CME) also concurred with that of CBOE, as it saw 11,000 Bitcoin futures contracts getting traded, which was more than 2X of the trading volume Tuesday.
Currently, Bitcoin is trading at: $9,389.0146, -56.9902, -0.60%, as of 4:23a BST, the market is open.
Some analyst suggest that the technicals indicate BTCUSD at $10,000 this week, latest next.
Have a terrific week.