The Bakkt bitcoin futures contracts peaked to a new high, signaling strong institutional interest in BTC, risk exposure, affinity in ‘physically’ acquiring the underlying asset.Bakkt Bitcoin Futures Set New Record Days After Last Friday’s Peak
During a period of high volatility for bitcoin, the futures market picked up in earnest, breaking the previous record from last week and continuing on a streak of records over the past months. Bakkt now habitually trades above 2,000 BTC per day, about two months after its launch.BREAK: Bakkt volume at new all time high 🚀 Today's volume so far: 3151 BTC ($23.07 million) Realtime updates: @BakktBot | Sats for server costs: https://t.co/TF6sNUwWpO — Bakkt Volume Bot (@BakktBot) November 27, 2019
This time, BTC futures trading surged past 3,100 contracts, with the potential to rise further after the launch of options on futures.
The breakout Bakkt volume arrives on a day when bitcoin spot trading was not unusual and reached around $22 billion in the past day. But almost all futures markets remained much livelier, including BitMEX contracts.
Betting on bitcoin futures prices puts a new set of traders at the wheel, and makes BTC whales a bit less influential. Tether (USDT) would also start losing its grip on BTC price discovery, as futures markets follow a different logic. The Bakkt record volume also happened at a time when bitcoin price broke out for a relief rally, easily vaulting $7,500 just hours after breaking down to $6,000. BTC hiked to $7,552.00 as of 18:08 GMT, potentially triggering heightened interest and a rally to a higher valuation.
Bakkt is now seen as capable of setting new peaks each day. The exchange operator will also expand with a product based on the monthly physical-delivery futures, and offer cash-settled products.Futures Give New Mechanism to BTC Price Discovery
The BitMex futures market also reawakened, after recently falling to around $1 bi...