- BTC Monthly CME Group futures volume closed in July at a year-high.
- Positive financing rates showed that most futures contracts opened in recent months favored BTC’s price.
Bitcoin [BTC] monthly volume of futures on the derivatives marketplace Chicago Mercantile Exchange Group (CME Group) closed July at a year-high, data from The Block’s dashboard showed.
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BTC futures trading allows both traders and investors to speculate on the future price movements of the leading coin by placing bets on whether it would move up or down for a specified period in the future.
With more than 120,000 active users across 60 countries, CME Group is one of the world’s largest derivatives markets. It boasts high patronage from many institutional investors, including BlackRock, which recently submitted its Bitcoin Futures ETF application. This makes trading activity on the exchange one to watch out for.
BTC futures trading volume on the exchange over the past 30 days has totaled $53.3 billion at the time of writing. For comparison, a year ago this figure was $1.47 billion. This represented a remarkable increase of over 3500% in monthly trading volume for CME Group BTC futures over the past 12 months.
Source: The Block
We trust in BTC
The leading coin’s futures markets revealed that most of the bets placed last month focused on a price rally. This has happened despite the coin’s persistence within the $29,000 and $32,000 price ranges and raging negative market sentiment.
According to data from Mint glassBTC funding rates across all exchanges have remained significantly positive over the past few months.
Source: Coinglass
In futures contracts, funding rates refer to the recurring fees exchanged between holders of long (buy) and short (sell) positions. These fees help ensure that the price of the futures contract closely matches the spot price of the underlying asset (actual market price).
When positive, it means more long positions are being opened and often reflects general market sentiment. A negative funding ratio, on the other hand, indicates declining interests and the taking on of more short positions.
With the past few months marked by a growing number of long BTC trading positions and BTC’s temporary trading above USD 30,000, short traders have plunged into losses.
Source: The Block
How much are 1,10,100 BTC worth today
Some traders cannot bear losses
At the time of writing, BTC was trading hands at $29,320.87, according to data from CoinMarketCap. As the price of the king coin continues to encounter resistance at the $30,000 price level, the new address momentum has diminished.
At the time of writing, BTC’s new address count was 491,514. Per data from Glasnodebased on a 30-day moving average, the decline started in April and has fallen 7% since then.
Source: Glassnode