For 10 days, Bitcoin futures trading volumes, presumably primarily by institutional investors, have been very sustained.
This has been revealed On twitter by independent analyst Federico Izzi, who presents a chart showing that 10-day CME bitcoin futures contracts have recorded an average daily volume of about $ 300 million.
This is by far the longest band in terms of trading volumes since these contracts were launched in December 2017. In addition, the second highest peak of daily transactions in 2020, at $ 595 million, occurred on March 12.
Given that this type of financial product, with these trading volumes, is mainly used by institutional investors, the previous data clearly suggests that, after the vertical collapse of March 12, the interest of these large investors in Bitcoin has literally taken off.
Obviously, it is unknown how long this high interest will continue, but since there has never been such a long streak of such sustained volumes in terms of futures trading on bitcoin, it's not just a momentary exploitation due to a single particular event, As the collapse of March 12, which actually lasted only one day.
In any case, after a drop in interest in the days following the collapse, that is, on March 15, the volumes increased again to around 300 million over the next five days, showing that interest was not limited at all to just the day of the collapse, and to the next two days.
Further, at least since January, it has been evident that a significant amount of capital of large institutional investors It is flowing into the cryptocurrency markets, and in particular the bitcoin market, therefore this exceptional strip cannot even be considered something unusual.
It should not be forgotten that the Fed announced days ago a powerful plan that could flood financial markets with dollars, some of which could end flowing into cryptocurrency markets, and this could lead many investors to consider investing in bitcoin attractive, especially at this time when the price is much lower than in the last 10 months.
The interest of institutional investors in this market should not surprise us and the data only confirm that Bitcoin is an interesting asset even for them.
It is conceivable that they are primarily interested in taking advantage of their volatility for purely speculative purposes, but it is not absurd to imagine that part of this capital could also be used for long-term investments.