The Night of Nov. 3: A Bitcoin Boom
As the United States prepared to cast their votes on the fateful night of November 3, 2020, Bitcoin decided it was its time to shine. On the Chicago Mercantile Exchange (CME), the trading volume hit unprecedented heights, capturing the attention of traders and casual observers alike.
A Volume Surge Like No Other
By the morning of November 4, the statistics were staggering. Over 6,700 Bitcoin futures contracts were traded overnight, equivalent to 33,500 Bitcoin. That’s 75% more than any previous day’s trading volume recorded in that year! A CME spokesperson remarked that it was more than double the volume since the inception of these contracts. Cue the applause, Bitcoin enthusiasts!
The Numbers Game: Breaking Down the Metrics
Here’s how it breaks down: Between 5 PM CST on Nov. 3 and 8 AM CST on Nov. 4, traders set the CME on fire with their enthusiasm. Each futures contract represents 5 BTC, meaning that traders were exchanging a jaw-dropping $462 million worth of Bitcoin in just one night. When the numbers are this big, it’s hard not to sit back and marvel.
Record-Breaking Players in the Game
With these high volumes came a record number of significant players in the market. The CME reported an increase in Long Open Interest Holders (LOIHs), which reflects large traders, jumping to a new record of 102. It’s like a high-stakes poker game, and everyone showed up with their best chips!
October’s Shift: Setting the Stage for November
Leading up to the monumental election day, traders were showing an increased appetite for Bitcoin. Average daily futures open interest (OI) for the first days of November rose by 20% compared to October, showcasing the building momentum. This enthusiasm was predictable, considering last month’s significant trading activity. In the last week of October alone, the weekly average daily volume surged by 164%. Talk about going out with a bang!
A Fortuitous Year for Bitcoin
The CME’s reflections on this trading year reveal a positive outlook, coinciding with Bitcoin’s incredible journey from its humble lows near $3,800 in March 2020. As of now, Bitcoin’s values have catapulted to heights unseen in nearly three years. With loyal fans and enthusiastic traders alike, the digital currency seems ready to tackle whatever comes next.
