Bitcoin Price Surges to $8,600 Following Bakkt’s Highest Trading Volume Day
Bakkt’s Bitcoin futures trading platform appears finally to be showing progressive increases, reaching its highest volume trading volume day. After the slow start, the number of contracts traded on the 9th of October was 224 BTC. Interestingly enough, this happens on the day when Bitcoin surged to $8,600, marking a three-week high.
Bitcoin Price Surges to $8,600
After a few weeks of declines and sideways trading, Bitcoin finally marked a notable move, surging to $8,600 in a matter of hours. This also saw the price climbing to a three-week high as volumes across the board also increased significantly.
As Cryptopotato reported today, the bullish divergence along with the descending wedge’s breakout three days ago is not disappointing for Bitcoin’s price. However, it remains interesting to see whether Bitcoin will manage to push beyond the upcoming resistance line at the 200MA.
It’s also worth noting that Bitcoin’s dominance has been declining throughout the past three weeks and some of the altcoins managed to capitalize on that. Ether (ETH), Ripple (XRP), and Binance Coin (BNB), all made notable gains against the USD and against Bitcoin as well. It appears that the trend of the second half of 2019 where altcoins failed to capture the opportunities presented by the declining price of Bitcoin might be reversing but we’ve yet to see if that’s to be true.
Bakkt Trading Volume Also Surges
Despite kicking off with negligible volumes, Bakkt also saw a massive surge in the volume of the monthly Bitcoin futures contracts on its platform.
According to Bakkt Volume Bot, yesterday the platform saw a total of 224 traded contracts which is its current all-time high (ATH). Given that each contract represents 1 bitcoin, the total cash equivalent is equal to $1.9 million.
Daily summary of Wednesday’s Bakkt Bitcoin Monthly Futures:
? Traded contracts: 224 (+796%) (New ATH ?)
? Day before: 25
? New all time high: 224Follow @BakktBot for realtime updates. pic.twitter.com/gd7nu1GndG
— Bakkt Volume Bot (@BakktBot) October 10, 2019
Bakkt Has Still a Long Way to Go
While Bakkt has notably increased its trading volume in a day, the contract number is still far behind the Chicago Mercantile Exchange. CME has also seen a significant increase from the 8th to the 9th of October. The number of contracts has more than doubled from 2,500 to 5,200.
However, there are a few key differences between the two types of contracts. One CME Bitcoin futures contract represents 5 bitcoins, instead of 1 as it is with Bakkt. Thus, the difference between the volume of the two platforms is even more substantial.
On the other hand, Bakkt is providing physical delivery. When the contract expires, each investor will receive an actual Bitcoin rather than its cash equivalent as it is with CME and other futures contracts. Purportedly, this should have a greater impact on the liquidity of the market.
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