Bitcoin’s birth was a symbol of counterculture and had been regarded as the rebel currency having near anonymity and a lack of regulation. After a decade, there are signs that Bitcoin is growing and entering the establishment its creators sought to destabilize. The Cryptocurrency has surged in bigger value investors from the trading firms to hedge funds having increasingly turned to the exchanges regulated in the traditional financial centres. They are purchasing Bitcoin futures in order to gain exposure to the asset while avoiding the hacks that plagues the Cryptocurrency industry.
The Cryptocurrency market has been associated by many with the dark web money laundering and the Wild West is beginning to be discussed by financiers in the same breath as hedging instruments, compliance and derivatives. The investors have ploughed the record levels of money into the Bitcoin futures at regulated exchanges in Britain and the United States the previous month where they were craving for a piece of the action but instead was seeking the kind of protection made to satisfy their compliance officers.
Between the period of March and May, Bitcoin has more than doubled in price as the ascent bombarded by double digit price swings comparable with its 2017 bubble that was driven by smaller retail investors. During that period, the Chicago based CME Group Inc’s average daily volumes of the Bitcoin futures contracts had steeped over seven-fold to a record of $508 million in May. Along with that, the number of open interest contracts of which have not been settled yet also hit a record. A London registered platform, Crypto Facilities bought this year for over $100 million by one of the leading Cryptocurrency exchange Kraken said that the Bitcoin futures daily trading volumes have jumped over three fold from March to May attaining a record of $84 million.
As the mainstream market is growing, the owner of the New York Stock Exchange, Intercontinental Exchange Inc. (ICE) has plans to offer Bitcoin futures in the coming months via a new Cryptocurrency trading platform, Bakkt.
Bitcoin Growth Scenario in 2020: Is Bitcoin Really Growing Up?
A comprehensive analysis has predicted that the price of bitcoin will go up to $20K by the end of 2020 and is likely to hit $400K by the end of 2030. Bitcoin is growing although the coronavirus pandemic has caused a bearish trend off late. Following its run to $10,000 ahead of the bitcoin halving, BTC has been trading through a narrow channel. It has made several futile attempts for breaking through the $10,000 resistance but at the same time, we could see that the price support is just below the $9,000 level. As of now, BTC has experienced two lowest trading days. Many anticipate that the reduced trading volumes, the lower volatility and the less interest from day traders offer a challenging short-term backdrop for BTC.
Yet, there is a hope that Bitcoin would be able to get past the bullish phase and continue to grow, keeping behind the hurdles.
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