Bedroom cryptocurrency traders and analysts have frequently expressed concerns about Bitcoin (BTC)’s inability to overcome its all-time highs. However, experts from the Chicago Mercantile Exchange (CME), TradingView, and TJM Institutional Services believe that spot Bitcoin exchange trading is on the way. ETFs will play a key role in pushing the price of BTC to the highest prices traders dream of.
Speaking at Consensus on the role cryptocurrency derivatives will play in future markets, TradingView General Manager Pierce Crosby said that while derivatives have always been an integral part of a cryptocurrency trader’s experience, trading on centralized exchanges from 2015 to 2022 He explained that doing so means a lot of physical goods and transactions. Margin traders have had their faces “torn” by high fees and slippage.
Crosby said:
“On the retail side, ETFs are a great way for investors to quickly buy and exit assets when they need them, primarily because they pay very low fees to get in and out.”
Commenting on the spot Bitcoin ETF’s acceptance of BTC as a “valid” investment asset and its potential impact on future price discovery, Giovanni Vicioso, Global Head of Crypto Products at CME Group, said: “Centralized exchanges” suggest that “deep liquidity and increased trading volume in CME contracts” could help with Bitcoin’s price discovery.
Bitcoin: Canary in the Coal Mine or Inevitability of Stocks and Commodities?
From 2017 to 2021, a few analysts predicted that Bitcoin would act as a hedge against inflation and outperform the stock market asymmetrically. The topic is somewhat controversial among investment circles, but TJM Institutional Services Managing Director Jim Iuorio said that despite the correlation, or lack of correlation, the recent U.S. Treasury auctions are a red flag.
Iorio said:
“Seven of the last 10 long-dated Treasury auctions have been disappointing. Some of them were the worst. My base case is that the Fed should step in to support the markets.”
Related: 3 solid indicators predicting BTC price rise to $75,000 in June
Iuorio believes the U.S. Federal Reserve will eventually have to cut interest rates and begin easing again, explaining that historically loose monetary policy has been beneficial for stocks, risk assets, and Bitcoin.
Regarding the correlation between Bitcoin and traditional markets, Crosby said:
“We are starting to see some large institutional players trying to change the narrative that cryptocurrencies are not just another inevitable outcome for tech stocks, Nasdaq and QQQ.”
Crosby explained that cryptocurrency market price movements sometimes follow those of 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 decentralized finance businesses. “The cryptocurrency market is starting to recover as it has little to do with the assumed outcome.”
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