Bitcoin Futures Volume Surges 186% as Price Hits $11K

Bitcoin’s derivative market sprang back to life on Monday with futures trading volume witnessing a triple-digit growth on the back of increased participation from U.S. based institutions. 

• Aggregate daily futures volume on major exchanges surged 186% to $43 billion – the highest single-day volume since March 13, according to data source Skew.
• Daily trading volume on institutional exchange CME rose 570% to a yearly high of $1.32 billion; Bakkt registered a record volume of $132 million.
• Total open interest rose to $5 billion – the highest since February.

• Volumes declined sharply amid dull bitcoin price action, but picked up again as bitcoin crossed $10,400 – a bullish breakout.
• The price rise was a combination of increasing retail demand and institutional volumes, said Chris Thomas, head of digital assets at Swissquote Bank.
• Joel Kruger, a currency strategist at LMAX Digital, told CoinDesk bitcoin now looks overextended, especially with the global outlook increasingly uncertain.
• The bitcoin supply – which fell to a 12-month low in Q2 – might now increase again as miners look to sell their coins on the open market – adding additional downside pressure.
• The cryptocurrency has pulled back from Monday's 11-month high of $11,394 to $10,700.