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Crypto Bull Runs Cause CME Bitcoin Futures Volume to Skyrocket

Crypto Bull Runs Cause CME Bitcoin Futures Volume to Skyrocket

The crypto market started seeing signs of recovery ever since 2019 arrived. While the recovery started with a simple break in price declines, the period of stability was brief, and as soon as February arrived, the market finally started seeing gains once more, through a series of smaller bull runs.

The bull runs continued throughout March as well, however, most coins ran into barriers after a while, and they spent the month trying to breach them, failing, and starting again. This changed on April 1st, when a massive spike up caused Bitcoin to grow by $1,000, and breach multiple resistances, seemingly with no effort. The coin grew past $5,000 within two days, and after a slight correction which followed after hitting $5,200, BTC quickly returned to this level, even managing to exceed it.

Crypto Bull Runs Cause CME Bitcoin Futures Volume to Skyrocket

Crypto price recovery affects the futures market

The market’s sudden recovery had consequences in other areas as well, one of which is the futures market. CME Group Inc. futures trading volumes hit record highs after the April 1st rally, exceeding 22,540 contracts on April 4th alone. The contract value included 112,710 BTC ($546 million), judging by the derivatives exchange operator.

CME also noted that the majority of the trading volume came in Asia hours, with a total of around 12,634 contracts being traded at the time. At the same time, the BTC price was at around $5,279, and growing by around 0.5%.

The new interest in Bitcoin futures came only around one month after CBOE Global Markets, one of CME’s largest rivals, said that it would review its approach to crypto derivatives. At the time, CBOE, which is the first mainstream exchange to start offering Bitcoin futures, also stated that it had no plans when it comes to listing more contracts.

CME, much like CBOE, started offering Bitcoin futures during the crypto price surge of 2017. The companies entered the space in December, when the crypto market was at its highest, with Bitcoin itself hitting $20,000 per coin. However, the situation was not to last, and Bitcoin price soon started dropping, and the drop continued for months, finally stopping after nearly 14 months of price declines, which were only occasionally interrupted by periods of stability or short, weak rallies.

Ever since then, the industry spent its time trying to attract institutional investors, hoping that they might be the key for a new bull run which would take the prices to their old glory. However, while the year was bad for crypto prices, it was extremely beneficial for crypto development, with numerous coins seeing significant improvements in technology, scalability, and other aspects.

Numerous coins saw upgrades, one of which — BCH hard fork — was even responsible for the second market crash in mid-November. However, the market is currently seeing recovery which is a small step away from bringing the coins’ prices back to the pre-November levels, which is a massive improvement, and an encouragement that many investors required in orted to return to the market.

And, as things stand now, it might be that institutions themselves will start getting more deeply involved with digital currencies, which successfully proven that they can survive even a year-long bear market and still achieve much in terms of development and progress.

About Ali Raza

A freelance journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

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