Cryptocurrencies

Cryptocurrency traders and analysts have repeatedly expressed concern over the lack of…

Bedroom cryptocurrency traders and analysts have repeatedly expressed concern over Bitcoin’s (BTC) inability to surpass its all-time highs, but specialists at the Chicago Mercantile Exchange (CME), TradingView and TJM Institutional Services believe that the launch of a Bitcoin spot exchange – the currency traded will play a role in… The fund (ETF) has played a major role in driving the price of BTC to the highest levels traders dream of.

Consensus panel on the future of cryptocurrency derivatives markets. Source: Ray Salmond / Cointelegraph

Speaking at Consensus about the role crypto derivatives will play in tomorrow’s market, Piers Crosby, Managing Director of TradingView, explained that derivatives have always been an integral part of the cryptocurrency trader experience, but Trading on centralized exchanges available from 2015 to 2022 means many instant and direct deals. Margin traders have their faces “ripped off” by high fees and slippage.

Crosby said:

“On the retail side, ETFs are a great way for investors to quickly get in and out of assets when necessary, mainly because you pay very low entry and exit fees. »

Regarding the potential impact that a spot Bitcoin ETF would have on the acceptance of BTC as a “valid” investment asset and its price discovery in the future, Giovanni Visioso, Global Head of Crypto Products at CME Group, said: “ETFs brought in fringe investors who were not comfortable with them. “Centralized Exchanges,” suggesting that “the high liquidity of CME contracts and the growth in their volumes” could be beneficial for Bitcoin price discovery.

Bitcoin: Canary in the coal mine or corollary for stocks and commodities?

From 2017 to 2021, some analysts expected Bitcoin to act as a hedge against inflation and asymmetric performance relative to the stock market. The topic remains somewhat controversial among investors, but TJM Institutional Services Managing Director Jim Iorio said that despite the correlation, or lack thereof, the recent U.S. Treasury auctions are a wake-up call.

Yurio said:

Seven of the ten longest Treasury auctions have been disappointing – and some have been very bad. My fundamental belief is that the Fed will have to intervene to support the market.

about: 3 Strong Indicators Predict Bitcoin Price to Hit $75,000 in June

Yorio explained that he believes the US Federal Reserve will eventually have to cut interest rates and start easing them again, and that historically, accommodative monetary policy has been beneficial for stocks, risk assets and Bitcoin.

Regarding Bitcoin’s tangible relationship with traditional markets, Crosby said:

“We are starting to see some of the larger institutional players trying to change the narrative that cryptocurrencies are not just another natural outgrowth of tech stocks, Nasdaq and QQQ.”

Crosby explained that cryptocurrency market price action sometimes follows stocks, gold and oil and that cryptocurrencies are also negatively affected by internal black swans such as the collapse of the FTX exchange and large centralized DeFi companies, but “once the market realizes that the cryptocurrency sector has nothing to do with the supposed corollary… We see the cryptocurrency market starting to recover.

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This article is intended for general information purposes and is not intended and should not be relied upon as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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