Bitcoin Futures Volume Rebounds to 2-Wk High as Bitcoin Consolidates Above $6,500
Bitcoin (BTC) draws attention of investors yet again as futures market recorded their largest volume since markets plummeted below $4,000.
As per data from tracking site Skew, April 2 recorded the top trading volumes by exchanges which offer Bitcoin futures since March 16.
CME Group recorded trading volume worth $347 million Thursday, while minor contender Bakkt recorded trading volume worth $12 million for physically settled futures contracts and trading volume worth $7.70 million for its cash product.
The increase was recorded after two weeks of subpar show. Last month, investors got spooked after Bitcoin and crypto markets in general recorded a decline in price and volume, with the numero uno crypto hitting a low of $3,600.
Price of Bitcoin has rebounded in the weeks that followed, with Bitcoin gaining almost 95% from March bottom to hit a high of $7,170.
Optimism has returned to market within short time span, even though the continuing ambiguity is affecting conventional markets over coronavirus.
Analysts trust that price of Bitcoin was earlier impacted by the epidemic as investors diluted their holding to mitigate losses in stocks and other assets.
To some crypto market players, the prevailing price of around $6,600 for Bitcoin is only a glimpse of the upcoming ferocious rally. Jonathan Leong, co-founder and CEO of trading platform BTSE, stated that he was ‘bullish’ about the future. He tweeted:
“#Bitcoin showing extraordinary resilience in what could possibly be the worst economic crisis yet, and it’s just getting started!”
Even Bitcoin cynics did not find the US government measures and stimulus program to nullify the impact of coronavirus disease interesting. From the time, the US Federal Reserve flushed the market with never before liquidity of $6 trillion and claimed that it has “infinite” money supply, commoners have started believing the argument fiat currency is a zero-sum game.
— Jonathan Leong (@BTSEJonathan) April 2, 2020
Supporting businesses that are not feasible in the long run or continue to make loss, including airlines, with fiat money seems to be the beginning of an unending cycle, gold bug Peter Schiff cautioned.
“Giving airlines money to keep workers employed they no longer need is not only a waste of taxpayer money, but it leads to a miss-allocations of labor resources, and a less efficient and competitive American airline industry that will be in constant need of future bailouts.”