For 10 days now, the trading volumes of bitcoin futures, presumably mainly by institutional investors, has been very sustained.
This has been revealed on Twitter by the independent analyst and collaborator of The Cryptonomist Federico Izzi, who presents a graph showing that the 10-day CME bitcoin futures contracts have recorded an average daily volume of about 300 million dollars.
This is by far the longest strip in terms of trading volumes since these contracts were launched in December 2017. Moreover, the second-highest peak of daily trades in 2020, with $595 million, occurred on March 12th.
Given that this type of financial product, with these trading volumes, is mainly used by institutional investors, the above data suggest quite clearly that following the vertical collapse on March 12th, the interest of these large investors in bitcoin has literally taken off.
Obviously, there is no telling how long this high interest will continue, but since there has never been such a long streak of such sustained volumes in terms of trading futures on bitcoin, it is not only a momentary exploit due to a single particular event, such as the collapse of March 12th, which in fact lasted only one day.
If anything, after a drop in interest in the days following the collapse, i.e. March 15th, volumes rose again to around 300 million in the following five days, showing that interest was not at all limited only to the day of the collapse, and to the two following days.
Moreover, since January at least, it has been evident that a significant amount of capital from large institutional investors is flowing into the crypto markets, and in particular the bitcoin market, hence this exceptional strip cannot even be considered something unusual.
It should not be forgotten that the Fed announced days ago a powerful plan that could flood the financial markets with dollars, some of which could end up flowing into the crypto markets, and this could lead many investors to consider it attractive to invest in bitcoin, especially at this time when the price is much lower than in the last 10 months.
The interest of institutional investors in this market should not come as a surprise and the data only confirms that bitcoin is an interesting asset even for them.
It is conceivable that they are mainly interested in taking advantage of its volatility for mere speculative purposes, but it is not absurd to imagine that some of this capital could also be used for long-term investments.