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The CME Group, the leading derivatives market in the US, announced that Bitcoin futures had reached a record trading volume on Thursday, April 4th.
As cryptocurrency continues to move in the uptrend, futures markets are warming up with both long and short positions. Compared to typical cryptocurrency exchanges, which allow investors to exchange cryptography with other investors on the basis of agreed prices, the futures market allows for extended price speculation. Investors who want to bet against the current uptrend of Bitcoin or who may think that the currency has already exceeded its market value may open short positions and make withdrawals if the currency falls. Bullish investors may also enter into long-term contracts, provided that current market prices are nothing compared to their future valuation.
According to a tweet published by the CME group, Bitcoin futures reached an unprecedented peak, with traders having pbaded 22,500 contracts worth more than 112,000 BTCs,
CME Bitcoin's futures contracts had a record trading day on April 4, reaching a record volume of more than 22.5K contracts (equivalent of 112.7K bitcoin), surpbading the previous record of more than 18.3K (equivalent 64.3K bitcoin) on February 19th.
The CME group and Bitcoin futures trade they provide have a historical legacy with the BTC price. The group opened the Bitcoin futures markets for the first time to the public on December 17, 2017, during the latest BTC epic race that brought cryptocurrency to $ 20,000. However, the price fell rapidly and less than a week after the entry of the CME group into the market, BTC entered a free fall phase of valuation.
Some investors have pointed to the presence of the futures market as a brake on the growth of Bitcoin prices, especially given the vulnerability of the crypto markets to manipulation over that of traditional stocks. Futures give investors a way to bet against the price of the currency, thus capitalizing on BTC shorts, but they can also be a source of manipulation if institutional clients start to influence the market.
Earlier in the week, the Chicago Futures Commission (CFTC) released its report on trading positions on the BTC, noting that "smart money" had shifted dramatically in the face of continuing rising cryptocurrency rates. According to the report, small investors were modifying their future contracts to reduce shorts and increase long positions. In comparison, large institutional investors moved in the opposite direction, increasing their short positions while reducing their bullish futures for Bitcoin.
No one seems to be able to conclude on the nature of the current Bitcoin market, as badysts also say the coin is overbought and about to take off for another price hike. Fundstrat, a highly regarded cryptocurrency badyst, said that Bitcoin transactions above its 200-day moving average were an extremely optimistic sign for the currency, despite the huge gains that BTC had accumulated so far. now.
However, other badysts are beginning to say that $ 6000 represents a substantial source of resistance for Bitcoin. BTC was trading around $ 6,000 before the cryptocurrency market collapsed in mid-November 2018. Given the glut of investors who lost money during the sudden market move, there will likely be significant resistance to traders' attempts to recover from their position.
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