The Futures market of crypto-assets has been on a rollercoaster ride in 2019.
After a tremendous price rally during the April-June period, the Futures market exploded in terms of trading volume in July. BitMEX registered daily aggregated volumes of over $5 billion in July. Binance Futures platform was also launched in early September, and the highly anticipated Bakkt Futures went live on 23 September
However, Bitcoin‘s falling valuation since June had a significant affect on the Futures trading volume across the aforementioned institutions, with Bakkt especially off to a lukewarm start.
Just as investors’ interest was veering slightly away from the Futures market, 25 October recorded the resurrection of Bitcoin, as a 35 percent pump led the largest crypto-asset in the world to regain its previous 32-day losses.
The sentiment carried forward to the Futures market as well.
According to a Skew Markets report, BitMEX registered aggregated daily volumes of over $8.5 billion on BTC futures, a figure which was its highest since meeting the same numbers back in July. Binance echoed the same surge in volume, recording over $2 billion trading volume on its platform.
There is a recurring pattern here.
Although it is usually assumed that the launch of Bitcoin Futures on any institutional platform can lead to a BTC bull run, Bakkt’s launch did not have the same impact. Neither did Binance.
During the consolidation phase after Bitcoin peaked at $13,800, the repercussions of a slow market were observed on BitMEX, when the daily volume dipped below $1 billion last month.
Ethereum had a significantly better month in early September, but the collective fall on 24 September hit its Futures perpetual trading volume as well.
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It can be speculated that Futures trading can hardly be credited for a collective bull run, as it is the other way around. Before the recent rise on 25 October, Bakkt finally registered a healthy volume of $4.8 million on 23 October, which was later beaten again on 25 October when a high of $10.3 million was recorded.