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A survey by Tokensight identified that the total futures trading overall asset in the crypto industry becomes over $2.1 trillion in Q1 2020. This is a 314% gain comparatively drum the 2019 Q 4 average.
According to the “2020 Q1 Cryptocurrency Derivatives Exchange Industry Report”, despite a little rejection in Q4 2020 over Q1 2019 is eight times Greater.
For trading product determination TokenInsight included BitMEX, OKEx, Huobi DM, Finance Futures, Deribit, Bitget, Binance JEX, FTX, Gate.io, BFX.NU, Bitz, and KuMEX, in addition to some emerging derivatives exchanges.
Daily Ratio Trading Volume Skyrocketed
The mean daily trading volume of the entire market in Q1,2020 catches $23.3 billion. This shows a 274% growth from 2019. Researchers in those who were the main in charge to produce the report comments on the following
“We believe the cryptocurrency futures have already possessed some attributes of market-leading indicators, and spot market participants can refer to futures trading volume for position management.”
The research also high spotted that the association reflecting between futures and spot trading volume fell 0.31. This is paragon to the 0.76 resisted in the Q. of 2019. Investigators wind up that this phenomenon explains that futures market partners “may have been relatively independent” from the spot
Futures Markets Trading Connected With Spot Market Movements
When the Futures market is unusually traded the study indicates that the spot market is reveling in significant fluctuations. Following the same line, the report states:
“At this time, investors need to adjust their positions. Besides, in the market downturn, only when the future volume finally shrinks, the market may experience a meaningful rebound.”
A survey highlighted by Bitcoinik on April 21 reported that Binance futures come out as the biggest winner in the futures market, following the Black Thursday sell-off.
At that time, Binance upgraded $2.8 billion in just 24 hours of Bitcoin futures volumes. Their result surprised both BitMEX ($2.1B) and Huobi ($2.46b).
According to the data given by Coinmetrics Binance futures Bitcoin (BTC) open interest share grew up from about 1 0% in mid-March to nearly 25% by April 12.