Coindesk pointed out that over half of the Bitcoin and Ethereum perpetual futures trading volume on Kalshi, a derivatives exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC), is due to repetitive trading by automated algorithms (bots) targeting specific amounts. Recently, identical trades worth $5,499 accounted for 57% ($7.7 million) of Kalshi's Ethereum futures trading volume. Bitcoin futures also saw combined trades of $2,500 and $5,000 in a 1:2 ratio account for 54% of the total trading volume. This is a typical high-frequency trading (HFT) algorithm pattern that automatically adjusts the number of contracts according to price fluctuations to maintain a fixed dollar value (clip). The trading volume to open interest ratio for Ethereum futures reached 61 times, indicating severe overheating.
