The weekly volume metrics on CME projects a rise of 600% in the trading volume. The average volume in the last two weeks is 6.85(negative) and 7.72 (positive), units respectively. However, the volume in previous weeks is lower at around 1.031 and 0.87 units.
The institutional interest in Bitcoin [BTC] is evidently on the rise. The two towering candles reflect the rising institutional investment in Bitcoin futures contracts. Nevertheless, the towers are of opposite colors, i.e., one representing a sell-off followed by a buy. Hence, even institutional traders seem uncertain regarding the direction of the price.
On the monthly scale, only one week into September the volume is considerably higher than the previous months. Nevertheless, it can be corrected in the following weeks by a sell-off.
On a daily scale, the massive spike in volume has been witnessed in the last two days. It can be attributed to a number of factors.
Moreover, the renewed trade war between the US and China on Sunday is acting as a robust positive catalyst to its price. Bitcoin basher and Gold buff like Peter Schiff also seems to be awakening to the fact that Bitcoin is an ideal store of wealth. However, the sudden movement can also be a set up for a ‘bull trap.’
Nevertheless, the rising institutional interest is Bitcoin is all around a positive signal. The demand is also being met with an increasing number of platforms providing Bitcoin-related products like custody, trust and futures trading for institutions.
Do you think that Bitcoin will soon breach its All-time high with rising institutional interest or fall to a trap? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com