In light of the news that Bakkt has gone weeks with no trades, today we are reporting on the CME Bitcoin options volume which hit a record low yesterday. The demand for Bitcoin options on the regulated US-based derivatives exchanges has dried up lately, showing that the price volatility and the coronavirus outbreak is affecting all trading spheres.
The Chicago Mercantile Exchange (CME) is therefore in the Bitcoin news now, trading just three Bitcoin options contracts yesterday with a notional amount of 15 Bitcoin (around $80,000) as the exchange told the media.
This CME Bitcoin options volume is the lowest daily volume for BTC options on record, according to Skew Markets. The previous record low of $125,000 was registered on January 24 this year.
As you probably know if you are reading our crypto news, the CME Bitcoin Options is a product that went live on January 13 this year and traded a total of $2.2 million in notional value on the first day. This beat its rival, the Intercontinental Exchange (ICE) and its Bakkt platform, which traded roughly $1 million since the opening date (December 9, 2019).
The CME Bitcoin options volume rose to a record high of $5.4 million on January 17, but has been declining ever since. As of Tuesday, the trading volumes were down by a record 96% from the minor spike of $2.1 million registered on March 9.
Meanwhile, we also reported about Bakkt and the absence of options trading activity ever since February 27. ICE’s exchange (Bakkt) rolled out its product on December 9 and had a record volume of $528,000 in notional value on January 8. The options volume evaporated following the launch of CME’s options in mid-January.
Notably, Bakkt has traded option contracts on just four days since mid-January. According to many people, the slowdown in activity on both CME and Bakkt is perhaps surprising given that the Bitcoin’s price volatility soared over the last few days.
Still, we must accept the fact that Bitcoin dropped by more than 50% this year and is trading at record lows. From a high of $10,500 at one point this year, it fell to $3,780 as the new yearly low after which it climbed to $4,000 and then $5,000. Currently, the BTC price is at $5,400 with a positive increase on the day.
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