Through a tweet, Bakkt Volume Bot has revealed that 1183 physically-settled Bitcoin futures contracts have traded on the regulated, ICE-backed platform at the time of this writing. This announcement is good news to Bakkt’s enthusiasts following a disappointing start marked by low trading volumes.
These figures represent a substantial increase in the platform’s previous all-time high of 640 contracts set earlier this week on Wednesday. With the last traded price set at $8,622 per contract, Bakkt’s current traded contracts represent approximately $10 million of trading contracts. If the current trading rates are anything to go by, the platform could easily achieve a total of 1, 500 Bitcoin contracts by the end of business today.
Interestingly, Bakkt’s new contract record coincided with Bitcoin surging by more than 13% within a short time following a price dumb that occurred on October 10 when prices dipped $8, 600 to $8, 200. It also had an eventful week concerning Bakkt’s trading volumes.
A week that started on a sluggish note turned out to be profitable with two records being broken on Wednesday and today at the time of this writing.
Why the sudden spike in Bakkt Volume?
When Bakkt started trading in September this year, each monthly futures contract was worth $9, 965. However, the price started declining following a cold reception from investors hitting a low of $7, 452 last Wednesday.
The real reason for the sudden spike in the trading cannot be linked clearly. However, a possible explanation could be due to a spike in Bitcoin’s prices following the Chinese premiere’s positive remarks concerning blockchain.
Another possible explanation could be due to cryptocurrency traders trying to hedge their positions by moving funds between derivatives markets across the globe. For instance, a trader may avert trading risks by purchasing futures at Bakkt to caution themselves against risks in other similar positions in different markets.
What’s next for Bakkt Volume Bot
Following the new record, cryptocurrency speculators believe that Bakkt new massive trading volume is suitable for crypto growth by bringing a new type of price standards in the crypto market. Following the record, Bakkt CEO Kelly Loeffler stated that the record is the “dawn of a new asset class.” He also added that new BTC derivatives products are coming at the end of Q4. Bakkt is set to launch the first regulated options contract for bitcoin futures on December 9.