Over the past week, as reported in our altcoin news, the price of bitcoin increased from $4,673 to $5,218 which is an 11 percent increase from the April 1st rally.
The rest of the crypto market followed including Ethereum and Litecoin being able to record gains against the US dollar. At the start of the month, many technical factors showed that the upside movement of bitcoin is supported and are boosting the price to increase by 20 percent as soon as it broke past the $4,200 price point.
It seems that if the volume of the CME bitcoin futures market is able to hold their position, there is a huge possibility that the futures market could become the catalyst of the next rally. CME already reported that about 22,542 contracts were traded reaching a value of $546 million. The report reads:
“CME Bitcoin futures hit a record 22,542 contracts traded on April 4, equivalent to 112,710 Bitcoin with a notional value of $546 million, according to a release from the derivatives exchange operator. A majority of the trading volume on that day came in Asia hours with 12,634 contracts traded.”
Some time ago, the bitcoin futures market volume was crushed by many because of the likely inflated volume of the entire crypto exchange market. According to Bitwise, nearly 96 percent of the reported BTC volume is faked or inflated which means that the futures market is only responsible for 32 percent of the bitcoin volume worldwide.
CME and CBOE reported that in just four days were able to record a volume of more than $90 million. The current $546 million volume recently reported, shows there is a massive and increasing demand for BTC in the short-term.
According to Bitwise, from March 4 to March 8, the total BTC spot volume from all of the exchanges reached $273 million. This is only half of the CME recorded volumes. The new record could serve as a catalyst for another price boost.
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