Trade Block's research has shown that the combined trading volume of futures contracts offered by Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) contracted in the second half of 2018 compared to spot market volume.
Also read: Gox creditors do not need this kind of "hero"
BTC futures volume competes with the leading spot exchanges in the third quarter of 2018
Despite the hype surrounding the launch of the CME and CBOE BTC futures contracts at the end of 2017, these markets were only a small part of the combined trading activities that took place on Coinbase, Itbit, Kraken, Bitstamp and Gemini.
However, with the burst of the bubble in 2018, spot volume fell by more than 70 percent when trading activity in January was compared to the average monthly volume recorded in the second half of 2018.
Combined with a more than doubled trading activity of CME futures, CME's CBOE and BTE futures trading volumes coincided with those of Coinbase, Itbit, Kraken, BItstamp and Gemini, which in the third quarter of 2018 combined each exchange.
Futures See volume reduction during the last quarter of 2018
While the volume of BTC spot and futures markets declined in September and October, combined spot markets recorded their strongest month-on-month month-on-month peak in May, while futures markets recorded their second-slowest month of the year.
While the spot market saw a healthy retracement in December, futures trading fell by more than half, the worst performing month since inception, indicating a departure from the cryptocurrency derivatives offered by CME and CBOE traditional cryptocurrency lets markets close.
On February 1, CME published a report that said the average daily trading volume of its BTC contracts over the past 283 days was $ 80 million. Combined with CBOE's approximately $ 10.65 million in daily trading, futures markets currently fall approximately 4.5 percent less than the 24-hour trading volume between BTC and USDT on Binance.
Do you think trading on the futures markets will continue to decline this year? Share your thoughts in the comments below!
Images courtesy of Shutterstock, Tradeblock
Bitcoin.com has a number of free, helpful services. For example, have you seen ours? Tools Page? You can even look up the exchange rate for a transaction in the past. Or calculate the value of your current stocks. Or create a paper wallet. And much more.
The article BTC Futures Volume Plummets Heading Into 2019 first appeared in the Bitcoin News.