The US Presidential election of 2020 is turning out to be quite an event as the counting of votes is still going on, as per the last update Georgia flipped in favor of Joe Biden. The US elections being such a significant event has quite a ripple effect on traditional financial markets as well as cryptocurrency markets.
The elections have not only made the stock market volatile but also triggered a $2000 bitcoin price rally. The derivatives markets experienced similar volatility, where CME reported the highest volume of bitcoin futures trading on its platform. As per one of the spokespeople of CME bitcoin futures on CME traded 75% above YTD levels on the day of the election.
A total of 6,700 Bitcoin futures contracts worth 5 bitcoin each were traded between 5 PM CST on November 3rd and 8 AM CST on November 4th. This resulted in a bitcoin futures volume of 33,500 BTC valued at $462 million in a single day. The CME spokesperson said,
“Overnight, before 9:00am NYT over 6,700 Bitcoin futures contracts traded (33,500 equivalent Bitcoin), 75% more than what has been observed YTD [year-to-date] and more than double the volume observed since launch,”
Bitcoin Futures Record Several New Highs on CME
The bitcoin futures markets on CME were abuzz from last week of October leading to the election, where the platform registered a 164% increase in contracts leading to the election month. The spokesperson explained,
“Bitcoin futures weekly ADV grew significantly in the week leading to the election. On average 11,428 contracts (57,140 equivalent Bitcoin) traded daily on the last week of October up 164% from the first full week in October.”
In the first two days of November, the volume of Daily futures Open Interest (OI) contracts grew by 20% compared to the previous month. The Long Open Interest Holders (LOIHs) hit an all-time high at 102 which is significant and indicates the growing interest of large players in the king coin.
