Bitcoin Futures Trading Volume Sees Significant Drop Effecting Bitmex’s High-Leverage Marketplace
According to data published by the popular crypto market aggregator, CryptoCompare, BitMEX’s daily volumes dropped substantially in January. As per the report, the proportion of futures trading volume decreased from 28% in December to 24% in January.
Futures trading accounted for $54.6 billion, 24% of this trading sector. The volume dropped around 16% from $268 billion to $223 billion in Spot and Futures trading volumes combined. BitMEX perpetual futures were down 41% since December registering $665 million. This decrease in the total volume for XBTUSD Perpetual Swaps shows that increased pressure from American authorities is already harming the exchange.
bitFlyerFX traded the highest amount of Bitcoin Futures volume in January and a daily average transactional value of $1.13 billion. Meanwhile, perpetual futures of regulated exchange such as the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE), increased by 20% and fell by 24% respectively.
As reported by the South China Morning Post, 15% of BitMEX’s user base is from the United States. Regulatory agencies in the United States and other countries are starting to play a more active role in the cryptocurrency market.
The CME increased its presence in the market by increasing in daily volume from $66.5 million up to $79.9 million. Meanwhile, the CBOE fell from $10.65 in December to $8.1 in January. That means that the CBOE will have less than 1% of the whole market.
BitFlyer shows that itis a major player in the market compared to other companies in the space. Indeed, its XBTJPY volume is bigger than the one registered by BitMEX. BitMEX has been a major player in the industry when it comes to futures.
BitFlyer increasing its presence in the market and the SEC trying to regulate the space are affecting BitMEX business as a whole.