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What about the BTC futures market

Nov 19, 2019 Forex News

Over the past few months, the buzz around BTC futures has begun to decline, while institutional investor interest has begun to increase. Over the three quarters of 2019, the BitMEX Exchange recorded more perpetual XBTUSD swaps than in 2018. And the growth trend will continue.

The largest futures trading volumes were recorded from April to June when Bitcoin began the growth phase and was able to rise from $5,000 to $13,000. During this period, CME recorded a trading volume of $200 million daily, while demand was $250 million.

After a long growth phase, the market saw a stage of correction, and with it the decline in the price of Bitcoin to the area of ​​9000-1000. It also influenced the futures market. Demand for CMEs fell to $132 million.

However, according to Bloomberg, now the market is at a critical point in a bear market. If we talk about the price of Bitcoin, then it seems that the correction phase is ending and an uptrend is observed. The introduction of Bakkt Futures has also highlighted a positive shift in institutional interests.

With the rise in the price of Bitcoin, the demand for CME futures has also bounced from a critical low point. It is worth noting that the price of Bitcoin is unlikely to reach new highs in the near future. But it is worth highlighting the fact that the futures market is approaching the maturation and weakening of volatility.

The chart shows that the volume of futures contracts fell significantly, but the price premium for futures remained positive and implied an increase in institutional buying and retention of interest.