The price surge in the Bitcoin market has boosted the Bitcoin futures market as well, at least what Bloomberg recently reported. Last week, CME Bitcoin futures reached a record of 22,542 contracts. As each contract is worth 5 BTC, this is the equivalent of 112,710 BTC (around $546 million USD). Asian markets traded more than half of this volume.
This new surge happened after Bitcoin had two stable months and then went 30% up in only a few days, reaching almost $5,300 USD.
CBOE and CME started Bitcoin futures back in 2017, but none of them was so successful as they wanted with the contracts since the companies were affected by the 2018 market crash. Now, however, as it seems that the bear market may be over, we are seeing new signs that futures can become more popular.
Bitcoin Operates on Buzz, Analyst Affirms
Why is Bitcoin having such a great time right now? An analyst called Joseph Young decided to give his opinion on this matter. According to him, part of the reason is because Asia is getting more and more interested in Bitcoin.
Other analysts, Jeff Kilburg and Jim Iourio, have been interviewed by CNBC this week and they have also talked about their prospects for Bitcoin.
Kilburg believes that Bitcoin sustained the jump and that we will see prices rising in the future. He said that could buy it at $5150 USD and they would have space to sell it for $5650 later since he believes that the token is capable of reaching this price.
Iuorio, on the other hand, affirmed that Bitcoin operates on buzz. According to him, this is why the prices have gone up recently. Once the prices went above $4,000 USD, “something palpable happened”, he said. He believes that the price can go as high as $6,000 USD, but do not believe that it will surpass that anytime soon, though.
All investors seemed to be fairly certain that the price of Bitcoin would continue to be around the $5,000 USD range and could go up soon, but they have also understood that the hype and the so-called buzz behind Bitcoin was important.
In fact, there is some correlation between the market sentiment and how well BTC is faring. The whole market is much more complicated than only hype, though, but it is an expectation that should be considered.
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