Bakkt recorded 1,741 BTC ($15.5 million) worth of contracts traded on Friday 8th November 2019 marking its largest trading day thus far. Interestingly, Bakkt’s all-time high trading day coincided with Bitcoin’s substantial price drop.
On 9th November, Bakkt, a digital assets platform announced on twitter that the bitcoin futures daily volumes on Bakkt had hit an all-time high of 1741 since its launch. This new daily volume traded on 9th November represents a 109% increase from the daily trading volume on 8th November, where 834 contracts were traded.
After a rather gloomy start, trading volumes have been on a constant improvement setting a record day after day. Bakkt set a new record in trading volume on 25th October with $10.3 million having been traded, 1183 bitcoin futures contracts were traded, registering a 257% trade volume increase. Again, on 5th November, Bakkt reported another great trading day, with about $10 million volume reported. When Bakkt was first launched, trading volumes were in a constant low with no daily trading volumes exceeding $2million; the numbers Bakkt has been reporting of late are all high.
There was a lot of hype during the launch of Bakkt platform that raised people’s expectations, a billion-dollar opening day and doubling of the bitcoin price were some of the expectations; however, none of that happened. What is proving to be rather interesting is the fact that Bakkt’s all-time high trading session occurred on the very day that bitcoin’s price nosedived. On 25th October, when Bakkt had another successful trading session, bitcoin’s price had had a mostly positive move.
The new all-time high record on Bakkt on 9th November coincides with a decrease in bitcoin price. Bitcoin price had a sharp decline, trading at less than $9,000. The last Bakkt contract to be reported traded at $8,895. This decrease is a 4.3% loss in the last 24 hours. The predominant question is: are these spikes in interest coincidental?
Bitcoin’s Volatility Increase Bakkt’s Trading Volumes
Bakkt is still relatively new; the investors allowed to trade on the platform are unenthusiastic to trade bitcoins; thus, these traders are mostly people waiting on some action. These traders are not locked out of other trading platforms; therefore, it is quite mind-boggling that they choose to trade on Bakkt with all this volatility. It seems that these traders are excited by this kind of volatility. It is, therefore, likely that Bakkt trading volumes will continue to rise when the bitcoin market is highly volatile.
Bakkt will soon be making a new monthly trading volume record; Bakkt will also launch the first regulated bitcoin options next month.