When it comes to trading Cryptocurrencies, there are a lot of factors that need to be taken into consideration. Many traders focus on technical analysis when they invest in digital assets, but there’s also a growing demand for more fundamental analysis. The latest developments in the Bitcoin trading space will have a lasting impact on the price movements of this cryptocurrency, and other altcoins as well. If you want to understand what’s happening with Bitcoin trading right now, read on. Here are the latest developments that are changing the way we think about this market:
Bitcoin Futures Trading
As more investors show interest in the market for trading Bitcoin futures, this could have a major impact on the price movement of the cryptocurrency. Futures trading is the traditional method that most financial institutions follow to make investments without having to put any money at risk. When investors decide to hedge their bets by buying or selling a product that has a price set in advance, it’s called futures trading.
When you trade futures, you don’t own the assets themselves. Instead, you hold a contract with the seller of the assets that give you the right to buy or sell the assets at a specific price at a specific date in the future. Additionally, exchanges like Meta Profit are being invented and the existing ones are developed to meet the upcoming needs of various cryptocurrency traders.
Institutional Investors Enter the Market
When a hedge fund started trading Bitcoin futures, there was a lot of interest in the cryptocurrency market. This helped to boost the price of Bitcoin and other Cryptocurrencies. After the hedge fund, Bakkt, released its services and trading, the price of Bitcoin rose by more than 6%. A major shift in the way that institutional investors think about the cryptocurrency market is a positive development. If these investors start trading Bitcoin, it could lead to an increase in the popularity of the cryptocurrency overall.
BTM and Exchange Listings
Bitmex, one of the leading cryptocurrency trading platforms, is planning to launch a Bitcoin-backed exchange-traded note (ETN) called the Bitcoin Cash Investment Fund. Bitmex is a trading platform that offers highly leveraged Bitcoin trading. The fund will trade Bitcoin Cash as its underlying asset. The firm has already completed a successful private placement of shares to raise USD4.5 million to launch the product. The fund is pegged to the price of Bitcoin Cash and tracks an index known as the XBT Provider 1-2 ETN. The fund will begin trading on a newly-created exchange-traded note that’s backed by the price of Bitcoin Cash.
Bitcoin ETFs Become More Popular
The price of Bitcoin has been skyrocketing, but the Securities and Exchange Commission (SEC) has yet to approve a Bitcoin-based ETF. Some investors think that it’s not a good idea for the SEC to approve a Bitcoin ETF. According to them, the price of Bitcoin might increase by a lot in a very short period, which might lead to massive losses for investors. Some of the major investment firms are also worried that a Bitcoin ETF could increase market volatility and cause significant volatility in the price of the underlying asset. Investors who want to participate in the cryptocurrency market without taking any risks need to look for alternatives like Bitcoin-based ETFs. These products track an underlying asset but don’t give you complete ownership of the asset itself. There’s a risk that you could lose money if the price of Bitcoin goes up quickly.
Investors are flocking to Bitcoin as the prices of this cryptocurrency have been rising. More institutional investors are entering the market, while the launch of Bitcoin futures and the introduction of Bitcoin ETFs has increased demand. The introduction of Bitcoin futures and derivatives could encourage more investors to invest in this market, while the new fund may attract more retail investors.