During this month, the price of Bitcoin rose by 55.5%, setting on May 13 a new annual maximum of $8,100. At the same time, the trading volume of the Chicago Mercantile Exchange (CME) in the bitcoin futures market for the first time exceeded $1 billion.
CME Bitcoin futures reached an all-time record high of 33.7K contracts on May 13 (168K equivalent bitcoin), up nearly 50% from the last record of 22.5K contracts on April 4. See how market participants are using $BTC to manage uncertainty: https://t.co/hDgraMj5pe pic.twitter.com/ct1xkjoJDF
— CMEGroup (@CMEGroup) 13 мая 2019 г.
For comparison, it is more than twice the amount of spot operations on the largest cryptocurrency exchange Binance. Consequently, the futures market and the over-the-counter markets of China and Japan significantly influence the cryptocurrency price movements.
In an interview with CNBC, Bitcoin investor and analyst Tim Seymour noted that many investors are betting specifically on Bitcoin. The increase in volume on the exchanges and hashrate are not an explanation for this increase. The trading war between the United States and China and the fall in stock markets may have made people think that Bitcoin is currently a safer haven.
According to the head of Capital Advisor, a large hedge fund, Karen Finerman, who also participated in a conversation with CNBC: “One of the theories out there is that people in China are looking to find a way to get their money, and maybe Bitcoin is the way to do it.”
In 2019, Bitcoin surpassed most of the traditional assets. While the profitability of oil, S&P 500, and gold from the beginning of the year amounted to 36%, 13%, and 1%, respectively, the yield of Bitcoin is about 110%.
Moreover, since the Chinese are seeking to insure their risks, US citizens are also presumably inclined to Bitcoin, due to the fall in US stock prices.
Bitcoin’s aggregate market capitalization is 59.7%. And it seems that the strong relationship between Bitcoin and altcoins has finally been broken since little-known coins do not participate in this rally.
Traders believe that now is the time to start getting rid of unpromising altcoins and give way to strong blockchain projects.
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