Why Is The Crypto Market Crashing? (Bitcoin Futures, Chinese New Year, $ + Bitcoin depreciation)
For a long time, bitcoin was positioned as active, which does not correlate with the traditional, but the current downturn clearly demonstrates that institutional investors do not consider it a safe haven in which to wait out the global market turmoil..
On Monday, the Dow Jones Index lost 7%, which led to a serious fall over the past 30 years, the bitcoin rate also fell by 20%. but when right in the markets just started to fall against the backdrop of the coronavirus epidemic, and many were expecting the influx of the coronavirus. Unfortunately, this never happened..
Trader’s Edge: Bitcoin Futures and Options
The interest of players in MTC can be judged by the futures market, the most convenient instrument for them, associated with a digital currency. For example, after the CME bitcoin futures volume peaked on February 19, the lowest in 2020 was recorded on March 6. At the same time, over the past two weeks, open interest in the instrument has decreased by 25%.
This clearly shows that institutional investors do not consider more stable assets to be digital gold, and the market itself is clearly correlated with traditional markets..
text: Ivan Malichenko, photo: Shutterstock, graphic: The Block
Basketball theory: when the cryptocurrency market starts to grow steadily