The recent rise in Bitcoin’s price resulted in increased transactions on the network. Many renown exchanges have recorded new all-time highs in their 24h volume.
Futures trading also saw a spike in the derivatives marketplaces like CME Group and Bakkt. The former recorded about $1,586,928,238 24h volume in Bitcoin futures trading while the latter recorded $151,041,274. The new enormous record in 24h volume in figures trading demonstrates a significant rise in interest for investors.
Bitcoin saw a rapid in price over the last few days and at the time of writing is trading at $10,700. The recent rise has made many investors look for new opportunities in the market. Those who are looking at futures contracts recorded a new all-time high in many exchanges.
Bakkt is one of those exchanges that recorded a shocking growth in futures contract volume. The exchange has had an average of 1,726 BTC trading contracts per day year-to-date but recorded 11,509 BTC on Monday. It tweeted:
🚨 Hot off the press 🚨
Our Bakkt Bitcoin Futures reached a new record high of 11,509 contracts traded today (each contract = 1 bitcoin) – an increase of 85% from our last record-setting day
— Bakkt (@Bakkt) July 27, 2020
The ICE-backed exchange offers monthly physical bitcoin futures contacts and has not been seeing any considerable volume before now. The new record can be a sign of more user attraction, too. But Bakkt was not the only exchange to experience a massive increase in the futures trading volume. Market leaders like Huobi, Binance, and OKEx all reported about $10 billion in BTC futures volume in the past 24 hours, according to skew stats.
The recent increase in the daily volume of futures BTC contracts can be because of many reasons, one of which is the price rise to over $10K. The price itself and the increase in the volume of the futures contract can be a result of the recent news from United States OCC.
According to the new ruling, US banks can now offer custody for digital asset investors. It means many institutional investors who have been skeptical in entering the cryptocurrency industry, now have sort of a relaxed mind and are trying to enter the market as soon as possible.