BitMEX All-Time Record: Over $10 Billion in Trading Volume Registered

Bitcoin Mercantile Exchange (BitMEX), a Seychelles-registered and Hong Kong-operated cryptocurrency derivatives exchange, recently recorded over $10 billion in total trading volume in just 24 hours.

This, according to Arthur Hayes, the CEO at BitMEX, who revealed via Twitter that high levels of volatility may have led to a dramatic surge in trading volume.

Nearly $86 Billion In Trading Volume In Past 30 Days

According to Twitter user AskMeHowToGetRekt (@IAmRipoff), the trading volumes on other cryptoasset exchanges (during the same time period) were “much lower.”

As confirmed by Sludgefeed, BitMEX has recorded approximately $86 billion in trading volume in the past 30 days. The recent spike on Saturday (May 11th) in the crypto trading platform’s volumes may have been due to a (potentially) large number of short position liquidations.

On Friday (May 10th), the Grayscale Bitcoin Trust (GBTC), which is available for over-the-counter trading on OTCQX, experienced a significant increase in volume. More than $50 million in total GBTC trades were processed (on Friday), which made it the most frequently traded OTC stock.

Bitcoin In “Bull Market Territory”

Over $29 billion in Bitcoin (BTC) trading volume was recorded on May 12th, surpassing the previous high set on January 8th, 2018 - when $25.5 billion in total BTC trades were processed.

Commenting on the recent price movements, prominent trader Alex Krüger argued that Bitcoin, the world’s most dominant cryptocurrency is now in “bull market territory.” Krüger, whose comments came after the bitcoin price surged past the $7,000 mark to reach a high of over $7,500, pointed out some key resistance levels to watch and other developments to keep an eye on:

Notably, 57% of Twitter users responding to Krüger’s survey, completed on May 9th, believe that Bitcoin will trade at $10,000 (or higher) this year.

"People Don't Steal Things That Don't Have Value"

The recent surge in bitcoin price has led to many analysts making extremely bullish price predictions. Mark Yusko, the CEO at Morgan Creek Capital Management, believes the BTC price will reach $400,000.

Yusko, who made his bullish prediction during an interview with news anchor Layah Heilpern on BloxLive TV, said that the large-scale security breach, which led to the loss of over 7,000 BTC on Binance, “confirmed” Bitcoin’s “value thesis.” According to Yusko, the theft of over $41 million in cryptocurrency tells us that bitcoin is perceived as something which is quite valuable as people "don't steal things that don't have value."

CME Looks to Double Bitcoin Futures Limit, but Is This Wise?

The Chicago Mercantile Exchange ( CME ) has a new request for its regulator, as it looks to double open position limits on bitcoin futures contracts in the face of significant interest.

Nasdaq reports that the CME has already petitioned its regulatory body, the Commodity Futures Trading Commission (CTFC), asking for an increase from 1000 contracts per spot month to 2000 per investor. Each contract represents five BTC, so essentially, at its peak,  a single investor's total position may edge towards a monumental 10,000 BTC.

This is in direct response to the contract's recent growth which is currently depicting record levels of activity, citing $370 million being traded per day. A spokesperson for the CME noted that the idea to increase limits was proposed on the continued maturity of the market:

Based on the significant growth and acceptance of our financially-settled CME Bitcoin futures markets, as well as our analysis of the underlying bitcoin market.

However, as Nasdaq writes the increase in the upper limit of positions is somewhat superfluous. As of July, the number of open interest contracts reached an all-time high of just 6100; given this, it seems the CME may be future-proofing.

Open to Manipulation?

However, concerns remain about the limit increase, as without them, the potential for manipulation rises; often to the detriment to the underlying asset. Although, as per the CTFC website, the threat of manipulation from bitcoin futures contracts is "low":

In general, position limits are not needed for markets where the threat of market manipulation is non-existent or very low.

Instead, Nasdaq posited that this might point to a lessening on the CTFC's strict rule of bitcoin; as well as a maturing of the market in general.

Nevertheless, some believe the CME's bitcoin futures contracts do pose a significant threat to the price of BTC; with some suggesting that blatant manipulation continues unchecked within the market.

As reported , there seems to be a correlation between the expiry dates of CME bitcoin futures contracts and a lull in the price point of BTC. In several instances, a significant drop in bitcoin's price has coincided with a closure from the CME. The most recent example of this occurred on Labor Day, September 2, when bitcoin rose an extraordinary 8% shortly after the CME shut.

Crypto analyst, Alex Kruger, highlighted this, noting the large gaps which formed on the CME chart, from the price discrepancy before and after closing.

This has become a pretty accepted practice within the market. Kruger has even gone to the lengths of compiling statistics each time this phenomenon transpired:

On these occasions, bitcoin cited an average 4.6% price discrepancy following the close of the CME.

Whether this is a coincidence or the market is indeed being actively manipulated is as yet unclear. Either way, with the increase of these limits it might be only a matter of time until we know for sure.

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