The Number of Bitcoin Futures Contracts on Bakkt 1600% higher than Last Year
On Feb. 19, Bitcoin attained its fifth-largest hourly price decline, thereby falling from $10,214.98 to $9,573.74. Its price was hindered below the $10,000 barrier. Similarly, its price declined the same way after reaching its zenith in 2017.
Likewise, on CME, it was discovered that Bitcoin’s trading volume was increasing, recently crossing $1 billion. This suggests increased institutional demand. This month, Bakkt has been recording higher contract expiration, as compared to its average last year, says Arcane.
According to data suggestions, 203 Bakkt Bitcoin Futures contracts were set for delivery on Feb. 20, with a notional value under $2 million. The delivery was not up to the January number but it was more than 2019 numbers. According to the research report, the two BTC funds released by Digital Galaxy a few months ago were responsible.
Bakkt’s Open Interest reached a zenith on Feb. 14 with $19 million, but the expiry of contracts on Feb. 20 led to a decline in open interest (to $10 million).
The research report noted that open interest has increased by 270 percent this year. A lifetime high of 1,861 was attained in the previous week regarding the number of open contracts on the exchange.
The latest price crash of Bitcoin may not affect current and potential investors, says the CEO of Morgan Creek Capital Management, Mark Yusko. According to Yusko, investors need to focus on the ‘buying’ opportunity.
Featured image courtesy of Shutterstock. Source: Cryptopress.