CME Bitcoin Futures Hits Record 1 day volume, BTC Rally Next?
Over the past seven days, after the first rally on April 1, from $ 4,200, the bitcoin price increased from around $ 4 673 to $ 5 21[ads1]8, with well over 11 percent.
The rest of the crypto market, including large cryptographic orders such as Litecoin and Ethereum, recorded large gains against US dollars with the bit established by bitcoin.
Bitcoin needs fuel to move out of $ 5,000 to $ 6,000 range, will CME be the fuel?
On April 1, various technical factors supported upward movement of bitcoin and enabled the dominant crypto competition to spike by 20 percent as soon as it broke out of an important resistance level of $ 4,200.
Bitcoin was able to move quickly from $ 4,200 to $ 4,800 within minutes due to three main factors:
- Liquidation of $ 500 Million on Short Contracts on Large Stocks
- A Single Buyer Purchase 20,000 BTC or $ 100 Million
- Lack of Resistance over $ 4,200
Some traders were cautious that bitcoin could break out of the $ 5,000 to $ 6,000 series because it would require strong incentives to push the asset over that area, similar to how a $ 100 million purchase order and a $ 500 million shorts settlement pushed BTC earlier this week.
In the short term, if the volume of the CME bitcoin futures market can be maintained, the bitcoin futures market is highly likely to serve as a catalyst for the next bitcoin movement.
On Tuesday, CME Bloomberg told that 22,542 bitcoin contracts were being traded, worth about $ 546 million.
Interestingly, most of the volume came in Asia hours, more than half of the daily volume.
"CME Bitcoin futures beat record 22,542 contracts traded on April 4, corresponding to 112,710 Bitcoin with a theoretical value of $ 546 million, according to a release from the derivatives exch enter operator. A majority of trading volume on that day came in Asia with 12,634 contracts , CME said. "Bloomberg reports read.
Trades processed in Asia hours do not necessarily translate into buyers in Asia who buy bitcoin futures contracts, but it is significantly increasing the likelihood that buyers are based in large cryptographic markets in Asia such as Japan and South Korea.
Why Futures Volume Is Important Now
Previously, bitloin futures market volume was ignored by many because of the inflated volume of the Cryptocurrency Exchange Market.
According to Bitwise, more than 95 percent of the reported bitcoin volume is inflated or flared, leaving the futures market responsible for around 35 percent of the global bitcoin volume.
17 / And when you remove false volume, CME and CBOE futures volume is significant ($ 91M), especially compared to the real spot volume (35% for February 2019).
This is good news because it's me ans CME – a regulated, supervised market – is of material size, which is important to an ETF. pic.twitter.com/pVqMqPSZkt
– Bitwise (@BitwiseInvest) March 22, 2019
From March 4 to March 8, CME and CBOE say to have registered a volume of over $ 91 million.
The volume of CME of $ 546 million on April 4 dwarfs the 4-day volume recorded in early March, showing a striking increase in demand for BTC in a short time.
CME Volume 4 April Exceeded total daily spot volume in March
Bitwise also reported that from March 4 to March 8, the total BTC spot volume on all exchanges was $ 273 million. It is exactly half the volume recorded by CME in a single day.
4 / Total daily spot volume is about $ 270M-95% less than reported. pic.twitter.com/kILQcqOlQR
– Bitwise (@BitwiseInvest) March 22, 2019
Whether the volume of the CME bitcoin futures market will be maintained over the medium term or Decline after its first spike on April 4 remains an uncertainty.
But it can serve as a catalyst for the next move of the BTC when $ 500 million liquidation of short-term contracts pushed bitcoin up on April 1. [19659032]
