Bitcoin Futures Flash Bullish As Binance Sets $700 Million Daily Record
Cryptocurrency exchange Binance surprised analysts this week after its Bitcoin futures set an unlikely trading record.
Binance Bucks Negative Market Mood
According to data from market analyst Skew on October 15, Binance’s BTCUSD product traded over $700 million on Tuesday alone.
The figure marks a new record for the exchange, which debuted its futures last month. Its timing, however, was what raised eyebrows among commentators.
As various resources show, overall Bitcoin trading has hit uninspiringly low levels in October. Among them were other Bitcoin futures offerings. Bakkt, which also launched in September, conversely traded just 10 BTC in the 24 hours to press time.
An identical pattern is repeating across consumer Bitcoin exchanges. Peer-to-peer platform Localbitcoins, for example, saw just $41 million change hands in the seven days ending October 12.
That number marks the platform’s weakest performance since May 2018, and like other data tracks Bitcoin price performance.
As Bitcoinist reported, Bitcoin’s downward trajectory has continued for several months, sideways performance punctuated with sudden losses.
Shortly after the Binance and Bakkt futures launch, BTC/USD shed 20% in hours to fall to around $8000, something from which the pair has yet to recover.
Institutions Still Keen on Bitcoin
Later, fresh data painted a grim picture of cryptocurrency market appeal among institutional investors. Press mentions had fallen to 2019 lows, it suggested, with the implication that broader interest among institutions had also waned.
Only Grayscale, the world’s largest cryptocurrency asset manager, bucked the negative sentiment. In an interview, a senior executive said that contrary to popular opinion, demand had remained steady throughout this year.
In addition, around 25% of new capital inflows were coming into altcoin markets, underscoring belief that cryptocurrency assets remained a lucrative opportunity.
Binance meanwhile continues to branch out into various financial spheres beyond its traditional exchange business.
This week, it released a dedicated exchange-traded product (ETP) for its in-house token, Binance Coin 00. A partnership with Swiss startup Amun, the ETP is already trading on the largest Swiss stock exchange, SIX.
As Skew noted, the futures product is now the third-largest by volume in the industry, just behind Huobi and BitMEX.
What do you think about Binance’s Bitcoin futures volume? Let us know in the comments below!
Images via Shutterstock, chart by Skew markets