Micro Bitcoin futures show volume surge as traders rush to pick up cheap BTC
CME Group, one of the largest derivatives marketplace in the world, has announced that the daily trading volume in micro bitcoin futures crossed 500,000 contracts on May 24, 2021.
This clearly shows a trend where the traders are trying to pick up bitcoin at a low value making use of the correction seen in the prices last week.
Bitcoin traded at over $60,000 a few weeks back but then due to a lot of talk, though there was no change in the fundamentals, from influencers and due to some tightening regulation in China, the price dropped by over 40% and now trades at around $37,000 at this point of time.
This has led to a lot of traders trying to pick up bitcoin futures at these prices as they believe that it would continue higher towards its all-time high and further during the course of the year. This is one of the major reasons why we are seeing an uptick in volume on a day when the prices were recovering.
“We are pleased with the strong uptake and support we have seen for this new contract so early on in its first month,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “At one-fiftieth the size of our larger Bitcoin futures, this new, smaller contract allows traders of all sizes to better manage their bitcoin price risk in an efficient, cost-effective way.”
The institutional traders are already known to be deep in bitcoin and the growth in trade volumes of the micro bitcoin futures shows that the retail traders are also showing a lot of interest in bitcoin. Though the world over, there continue to be sceptics about the real value of bitcoin and there are efforts to regulate and also block it, the market continues to grow and expand.
This has made many banks and regulators sit up and take notice and they have started bringing in more regulations to standardise the trading of bitcoin and other cryptocurrencies so that it becomes attractive for larger investors in the future. This is only going to add more value to the entire crypto ecosystem which would, in turn, help the prices push higher in the future.
It is this anticipation that is being seen in the surge of the trading volumes and the fact that this is happening in the first month of the introduction of micro bitcoin futures at the CME only adds to the hype.
