Saturday turned out to be the slowest day for crypto markets as total Bitcoin Futures volumes on the BitMEX platform was recorded to be a minor $948 Million.
Are Bitcoin Futures Trading Low?
While the leading derivatives exchange BitMEX only traded futures worth $948 Million, Binance Futures recorded a trading volume of 16k BTC in an hour. Also, recently the 24-hour trading volume of Binance’s futures markets was seen to have crossed 30,500 BTC.
Denominated in USDT, the equivalent of this would come to over $250 MM. Further, the figures were also said to have exceeded those of Binance spot trading which recorded a relatively lower 24-hour trading volume of 219,868,241 million denominated in USDT.
On the 9th of October, the trading volume of Bitcoin (BTC) futures on the Intercontinental Exchange’s (ICE) Bakkt platform reportedly soared to 224 contracts on Oct. 9, recording an increase of 796%. However, the start of trading on Bakkt showed poor volumes – merely 72 BTC on the first day. Interestingly, the situation has turned for the better and seems to have picked up a relatively healthy pace.
The low trading volume noted on the BitMEX platform could be one of the several instances of a bad trading day and it might gradually pick up.
Furthermore, despite the decline in Bitcoin prices, customer interest in CME Bitcoin futures remained strong during Q3 with daily Open Interest (OI) of over 4.6K contracts, up 61% vs Q3 2018.
As the market continues to garner more opportunities for Bitcoin Futures, it is predicted that Bitcoin prices will gradually increase as futures contracts continue to have a healthy trade volume.
Bitcoin Perpetual Funding Rates in Positive Territory
All Bitcoin perpetual funding Rates are currently in positive territory. A Perpetual Contract is a derivative product that is similar to the traditional Futures Contract.
The Funding Rate comprises two main parts the Interest Rate and the Premium / Discount. This rate aims to keep the traded price of the perpetual contract in line with the underlying reference price. Thus, the contract mimics how margin-trading markets work as buyers and sellers of the contract exchange interest payments periodically.
Will Bitcoin Futures continue to intrigue investors and traders in the long run? Let us know what you think in the comments below!
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.