Institutional Bitcoin Trading Volume Grows For 4 Consecutive Months

[Ozark]

A new report from curated data platform Diar reveals that institutional Bitcoin trading volumes record growth for the 4th month in a row.

INSTITUTIONS WARMING UP

Popular cryptocurrency data outlet Diar reports that institutional Bitcoin trading volumes have moved into growth for the 4th consecutive month. According to the report, they are hitting new highs against US-based exchanges as a percentage of the total trading volume.

As seen on the chart, the current volume is around 9 percent more compared to December 2018.

Notably, CBOE is the biggest loser, which doesn’t come much as a surprise. The Chicago Board Options Exchange revealed in March that it will no longer offer any new contracts for its cash-settled XBT Bitcoin futures product moving forward.

CME Group, on the other hand, is marking gains. As Bitcoinist reported last week, CME Bitcoin futures volume soared 950 percent on April 4th compared to the beginning of the month. As of Monday, April 8th, CME saw around 16,000 Bitcoin futures contract.

Grayscale’s Bitcoin Investment Trust (GBTC) which is traded on OTC markets has also lost dominance. The report outlines that GBTC has accounted for over 50 percent of the entire market share when it comes to institutional products but it is now standing in less than 24 percent.

DECLINING PRICE DIDN’T AFFECT INSTITUTIONAL DEMAND

Bitcoin has gone through a 15-month bear market, which dragged Bitcoin’s price down to yearly lows of around $3,200 from an all-time high of $20,000. In other words, the cryptocurrency is down around 85 percent from its peak.

According to Diar’s report, however, the decline in value failed to translate into more institutional demand, perhaps hinting that price isn’t such a prominent factor for institutions.

In any case, the rising interest in institutional Bitcoin trading products could be interpreted as a bullish sign. However, veteran trading expert Tone Vays has warned that Bitcoin’s recent rally doesn’t necessarily mean that the bear is over.

Others, however, have suggested that price may have bottomed as it’s now resembling a pattern seen prior to the previous bull-run if not a new parabolic advance.

Source: bitcoinist

[kventin.upgrade]

I read the opinion: “The key number to watch is the 200-day moving average… BTC’s bouncing along that. If Bitcoin holds above $4k, it’ll cross its 200-day [moving average] by August, so I think the outside window is five to six months before it starts to look technically like it’s back in a bull market.”

This is an interesting assumption. Perhaps by that time the price will be around 10,000 and it will be very scary for everyone to buy BTC again, because it has already happened.