CME Bitcoin [BTC] Futures Trading Volume Rise by 600% on Weekly Scale

The weekly volume metrics on CME projects a rise of 600% in the trading volume. The average volume in the last two weeks is 6.85(negative) and 7.72 (positive), units respectively. However, the volume in previous weeks is lower at around 1.031 and 0.87 units.

The institutional interest in Bitcoin [BTC] is evidently on the rise. The two towering candles reflect the rising institutional investment in Bitcoin futures contracts. Nevertheless, the towers are of opposite colors, i.e., one representing a sell-off followed by a buy. Hence, even institutional traders seem uncertain regarding the direction of the price.

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CME Bitcoin Futures Weekly Volume (Source

On the monthly scale, only one week into September the volume is considerably higher than the previous months. Nevertheless, it can be corrected in the following weeks by a sell-off.

On a daily scale, the massive spike in volume has been witnessed in the last two days. It can be attributed to a number of factors.

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CME Bitcoin Daily Chart (Source)

First, the announcement of the VanEck SolidX Bitcoin Trust yesterday. The impending launch of the Bakkt platform is also favoring the bulls. 

Moreover, the renewed trade war between the US and China on Sunday is acting as a robust positive catalyst to its price. Bitcoin basher and Gold buff like Peter Schiff also seems to be awakening to the fact that Bitcoin is an ideal store of wealth. However, the sudden movement can also be a set up for a ‘bull trap.’

Nevertheless, the rising institutional interest is Bitcoin is all around a positive signal. The demand is also being met with an increasing number of platforms providing Bitcoin-related products like custody, trust and futures trading for institutions.

Do you think that Bitcoin will soon breach its All-time high with rising institutional interest or fall to a trap? Please share your views with us. 

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