Bakkt Registers a 1600% Increase Bitcoin Futures Contracts Compared to Last Year
Feb. 19 saw Bitcoin register its fifth-largest hourly price drop. From $10,214.98 it fell to $9,573.74. Its price remained hemmed below the $10,000 barrier. The decline was reminiscent of the 2017 one when it had reached its peak.
Arcane Research suggests that while BTCs volume has been rising, the spot market price has drastically shifted. Again, the currency attained its peak this year. Its daily volume moved close to $1 billion.
Increasing Trading Volume
On CME, the research found out that Bitcoin’s trading volume was increasing, implying increased institutional demand. Arcane states that compared to its average last year, Bakkt has recorded higher contract expiry this month.
Available data reveals that up to 203 Bakkt Bitcoin Futures contracts having a notional value of under $2million, were set for delivery on Feb. 20. While the delivery didn’t match the January numbers, it exceeded the 2019 ones. The research attributed this increase to Digital Galaxy’s two BTC funds released a while back.
Despite Bakkt’s Open Interest peaking at $19 million on Feb. 14, it declined to $10 million forced by contracts expiring on Feb. 20.
This year, open interest increased by 270 percent, the research report noted. Furthermore, the number of open contracts on the exchange hit an all-time high of 1,861 last week.
Mark Yusko CEO of Morgan Creek Capital Management, contends that Bitcoin’s latest price crash may not affect current and potential investors. He maintains that the investors’ focus should be on the ‘buying’ opportunity.