At press time, the value of bitcoin stays nearly unchanged since our earlier protection and remains to be hovering inside the $6,400 vary. Apparently, $6,400 has develop into the brand new $6,500, or the spot the place bitcoin feels probably the most snug. The foreign money spent a number of days, if not weeks, traversing the $6,500 boards, however following a $300 drop late final week, bitcoin has solely managed to recuperate $200 of these “misplaced funds.” It’s unsettling, however not less than the coin isn’t falling any additional.
BTC is, for probably the most half, buying and selling on a flat vary, although it is experiencing low volatility. The draw back is that quantity is low as nicely, and it’s uncommon to see each volatility and quantity down on the identical time. Granted bitcoin can escape of its present falling wedge, we could witness a sudden bull rally.
One piece of fine information centering round bitcoin is the truth that bitcoin futures buying and selling appears to have grown considerably from the primary quarter to the third. CME Group Inc., which started allowing the buying and selling of bitcoin futures contracts in December 2017, introduced on Twitter:
“In Q3, bitcoin futures common each day quantity rose 41 p.c, and open curiosity was up 19 p.c over Q2.”
Simply two months in the past, volumes on the futures markets had been caught in oblivion for 3 consecutive buying and selling seasons. Roughly 2,500 BTC transactions – probably even much less – had been reported. That is greater than thrice lower than the place it had been only a few weeks in the past. Throughout early August, the quantity of recorded transactions exceeded eight,000, which implies figures fell by over 70 p.c in only a matter of days, and it was a scary time for all.
Now, nevertheless, the typical each day quantity has exploded, and has seemingly handed the 5,000 stage. It is a huge enchancment over the three,500 contracts reported in quarter two, and even stronger than the 1,800 contracts reported in quarter one (roughly 170 p.c larger).
Almost about open curiosity, the figures are additionally larger, with roughly 1,500 particular person contracts reported within the first quarter. In quarter three, CME says that roughly 2,900 contracts fall into the open curiosity class, which covers all contracts which are incomplete or unsettled however must be closed comparatively quickly.
CME managing director and world head of fairness merchandise and different investments Tim McCourt means that curiosity stemming from Asia is essentially to “blame” for the sudden success of bitcoin futures buying and selling. Whereas talking of current additions to the corporate’s roster, he commented:
“Out of the 40 p.c of bitcoin futures buying and selling on CME that’s exterior the USA, roughly 21 p.c is coming from Asia.”
Bitcoin Charts by TradingView