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CME Bitcoin futures: volumes explode
CME Bitcoin futures: volumes explode
Bitcoin

CME Bitcoin futures: volumes explode

By Eleonora Spagnolo - 24 Apr 2020

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The volumes of CME’s Bitcoin futures have reached a new record since the collapse on March 12th: 13,285 contracts traded yesterday, Thursday, April 23rd. 

Institutional investors seem to have taken advantage of a favourable moment for Bitcoin, at a time when there is a lot of uncertainty in the traditional financial markets.

Yesterday, in fact, Bitcoin experienced an increase that led the price to finally reach $7,500, after days of fluctuations in which the breaking of the $7,400 resistance was proving to be a difficult task. 

In any case, the volumes recorded yesterday by the CME, bearing in mind that each futures contract contains 5 BTC, lead the counter value in dollars to a figure that is close to $500 million. This is a lower level compared to March 12th, when, coinciding with one of the fastest and heaviest falls in the price of Bitcoin, the volumes in dollars approached 600 million dollars

The trend of the futures market and the record set by the CME show that Bitcoin is attracting increasing attention. 

Although the safe haven narrative has lost traction, as Bitcoin has not been able to demonstrate the strength of gold (which instead in recent days has reached its highest level in the last 8 years, exceeding $1,700 per ounce), the trend of these products demonstrates an interest that is still high.

After all, Bitcoin is approaching its third halving in a completely different scenario from the previous two. This time the world is struggling with an economic, health and social crisis that is affecting the classic markets and has even buried the price of oil, with the WTI ending up trading in negative. 

However, liquidity injections are coming into the market, in particular from the US Federal Reserve. This suggests that there will be a lot of capital to invest, perhaps even in Bitcoin. 

In this scenario of uncertainty and insecurity, institutional investors may want to play the Bitcoin card and hope for a rally that could lead the price to rise even more than the historical high of $20,000 reached at the end of 2017.

Eleonora Spagnolo
Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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