Bitcoin Trading Bucks Trend at Bakkt as Futures Hit $42.5M Record High

Bitcoin Trading Bucks Trend at Bakkt as Futures Hit $42.5M Record High

Bakkt trades $42.5M in Bitcoin futures in a single day

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Bitcoin (BTC) institutional trading platform Bakkt has set another giant new record for its futures contracts, topping 5,600 BTC on the day.

As the company confirmed on Twitter, Nov. 27 saw a fresh all-time volume high for Bakkt’s monthly Bitcoin futures. During the session, Bakkt reported 4,443 BTC traded — over 60% higher than its previous record. 

Bakkt doubles Bitcoin futures record

Subsequently, non-affiliated monitoring resource Bakkt Bot counted an even higher total for the day — 5,671 BTC ($42.5 million).

According to Bakkt Bot, the previous record in dollar terms was $20.3 million Nov. 22, making Wednesday’s achievement 109% higher.

In total, Bakkt’s monthly futures have now traded for two months, having previously attracted attention for unexpectedly low volumes.

More recently, a Bitcoin custody solution has begun operations, while new financial products are set to follow next month.

“We look forward to building on this momentum as we approach the launch of the Bakkt Bitcoin Options contracts on Dec 9th,” staff added while announcing the progress.

What bear market?

Interest in Bakkt currently contrasts with the overall market sentiment in Bitcoin, which has fallen considerably against the dollar in recent weeks. 

As Cointelegraph reported, one analyst considers investors were spooked by a fresh assault on exchanges from China, exiting their positions to buy back in at lower prices. 

A subsequent liquidity squeeze could be compounding the selling pressure, VanEck executive Gabor Gurbacs added.

Meanwhile, a recent report from exchange Binance, which also offers futures, revealed over 90% of institutional investors choose to store their coins with trusted third parties.


Zur Quelle
[/ihc-hide-content]

Bakkt trades $42.5M in Bitcoin futures in a single day

Binance Futures Bucks ‘Dismal’ Volume Trend — Trades a Record $700M

Binance Futures Bucks ‘Dismal’ Volume Trend — Trades a Record $700M

Only Binance Futures platform managed to escape Bitcoin trading volume nosedive

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Binance’s Bitcoin futures product is the only winner in a lackluster market this week as trading volume hits local lows. 

Research highlights “very low” activity

Analysis of various platforms’ trading volumes by exchange eToro’s senior market strategist Mati Greenspan on Oct. 15 revealed cryptocurrency markets had all but bottomed out in terms of activity.

From a peak of around $4 billion per day several months ago, Bitcoin (BTC) now sees less than $200 million change hands, he said referencing data from research outlet Messari.

Other players told a similar story, including derivatives giant BitMEX and P2P exchange Localbitcoins

Futures providers likewise have not escaped; both CME Group and newly-launched Bakkt continue to see what Greenspan describes as “very low” activity. 

Binance sets unlikely $700 million record

The downtrend follows fresh losses across crypto assets in recent weeks. As Cointelegraph reported, Bitcoin remains down around 20% versus levels several weeks ago.

Binance Bitcoin futures trading volume

Binance Bitcoin futures trading volume. Source: Skew Markets, Twitter

Despite the difficult conditions, not every business appears equally affected. As analyst Skew Markets noted on Twitter, Binance’s futures product in fact set a new daily trading volume record on Tuesday. 

More than $700 million of activity occurred on its BTC/USD futures product, making it the third most traded behind Huobi and BitMEX’s offerings. By comparison, Bakkt managed 10 BTC ($81,000).

Skew previously noted last Saturday was a particularly slow day for BitMEX — its volumes dipping to $1 billion versus $14 billion highs in late June.


Zur Quelle
[/ihc-hide-content]

Only Binance Futures platform managed to escape Bitcoin trading volume nosedive

Money Managers are Paying Big Bucks to Interpret Your Bitcoin Tweets

Money Managers are Paying Big Bucks to Interpret Your Bitcoin Tweets

Algorithms that can decode social media market sentiment are making waves in the institutional crypto landscape

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Algorithms that can decode market sentiment are making waves in the institutional crypto landscape, a July 17 report from Reuters claims. 

An Arms Race for Algorithms

With the resounding return of Bitcoin’s (BTC) volatility amid an ever-hotter crypto market, hedge funds and asset managers are increasingly turning to software developers to help them interpret and harness sentiment signals to their advantage.

Bin Ren — CEO of Alan Howard-owned Elwood Asset Management — told Reuters that the soaring interest in developing algorithms capable of identifying price clues from the tumultuous social media landscape has become akin to “an arms race for money managers.”

While A.I. and other software-driven sentiment analysis has long been an accepted tool in traditional financial markets, Reuters argues that crypto’s nativity to the internet makes the asset class potentially an ideal fit for such algorithmic parsing tools.

Moreover, the crypto sector isn’t served by centralized sources of information — such as central banks — that can traditionally provide economic indicators and financial statements for investors to interpret.

The price of so-dubbed sentiment analysis algos is undeniably steep. As Andrea Leccese, president of New York-based investment firm Bluesky Capital told Reuters, even a robot that can parse just anglophone Twitter can cost between $500,000-$1 million a pop, largely in developer fees. 

‘Similar to Modeling the Spreading of a Virus’

This fragmentation and vibrancy of the social media landscape — extending beyond Twitter to Reddit, Russian-developed Telegram, Japan’s Line, Korea’s Kakao and China’s WeChat, and many others — presents significant complexity for the Sherlocks of sentiment analysis.  

According to data from BitInfoCharts, Bitcoin-centric Tweets clock in at 22,784 daily as of press time and subscribers to Reddit’s main Bitcoin forum are at almost 1.1 million.

It isn’t impossible to finding method in the madness of this proliferation, Elwood’s Ren told Reuters, given that the “information propagates not randomly, but through a very well-defined structure […] like a tree.” He added: “It’s very similar to modeling the spreading of a virus.”

As Cointelegraph has reported, a Q1 2019 survey from Big Four auditor PwC found that quantitative funds — who avail themselves of both sentiment analysis and other tools — managed to secure higher overall returns than their rivals. 

This June, Fidelity-backed crypto analytics firm Coin Metrics partnered with Social Market Analytics to develop on a feed of real-time sentiment towards crypto based on Twitter data.


Zur Quelle
[/ihc-hide-content]

Algorithms that can decode social media market sentiment are making waves in the institutional crypto landscape