Bakkt Bitcoin Options Trading Slumps In Last 10 Days With Zero Activity

Trading activity in the Bakkt BTC option market seems to have been at a standstill in the past 10 days as no transactions have been recorded. The exchange’s option trading based on Bitcoin future prices dropped significantly despite a strong start in the first two weeks of 2020.

Bakkt’s business model was quite promising given the cutting edge as physical trade of Bitcoin for settlements within its ecosystem. This has however, yet to yield the speculated level of activity especially in trading Bitcoin futures and options. As it stands, around 63% of the transactions within this network are BTC backed.

Earlier in Jan. 2020, Bakkt’s trading volumes in futures and options were on an uptrend with the former hitting a high of $40.8 million during the first week. The BTC futures were more actively traded than the options and are currently at $20 million as of yesterday; Bitcoin Options traded on the other hand have been at the zero-mark for the past 10 days;

Source; [email protected]

Bakkt’s 1,500% Spike in Physical Bitcoins Delivered

This BTC oriented exchange saw the number of physical coins delivered to them increase by over 1500% over the course of January. Some analysts attributed the spike in volume to Bitcoin’s speculative nature which in turn correlates with the amount of activity in crypto exchanges. The leading digital currency has been on an uptrend to hit the $9,000 mark; this may have contributed to Bakkt’s physical BTC spike.

In addition, interest on unsettled future contracts grew by 14% to stand at $6.17 million. The exchange plans to roll out an alternative to settle BTC transactions through cash; they hope to edge out peers like CME who already have this convenience within their ecosystem. Stakeholders are also optimistic that the Bakkt BTC derivative volumes will pick up as we approach the May 2020 halving.

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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