Institutional investors are increasingly basing their transactions on the long-term outlook of Bitcoin and are no longer easily delayed by price volatility, according to the cryptocurrency derivatives exchange ZUBR.
ZUBR analyzes regulated exchanges such as the Chicago Mercantile Exchange (CME) and Bakkt and compares investment behavior in the bull and bear markets, in a new report titled “Institutional Investors Returns in the Bitcoin Futures Market.” ZUBR pointed out that institutional traders on regulated platforms are trying to keep Bitcoin in line with its long-term outlook and that there is more “open interest” compared to volumes.
The report included the following statements:
“Full-scale corporate interest may not have spread much yet. However, there is a long-term interest in cryptocurrency on exchanges at an unprecedented level. ”
ZUBR said that the trading volume of Bitcoin futures surged to over $ 4 trillion last year, with average monthly volumes nearly 60% higher than the previous average for 2019.
Long-Term Interest May Increase
ZUBR believes that the long-term interest in Bitcoin on regulated exchanges may increase as more institutional investors enter the market:
“What is clear is that regulated exchanges have attracted a different caliber of traders to the market by shifting the future dynamics of the cryptocurrency to what potential believers have wanted from the beginning: like replacing gold.”
According to analysts, interest in cryptocurrencies may be increasing day by day, which could make the market better. Especially in cases such as epidemics, if Bitcoin acts as a safe haven, its value will also increase.
The main points in the report can be listed as follows:
- Bitcoin futures volume exceeded $ 4 trillion last year. However, there is growth coming from institutional investors in CME and Bakkt, two companies that saw an increase in trade volume after an all-time high in May.
- Open Interest on CME and other regulated exchanges remained consistently higher compared to their traded volumes. This shows that traders in these locations are increasingly looking at the long-term outlook and are not easily affected by large increases or decreases in price.
- The trading volume correlation (as daily percentage change) is very similar for unregulated stock markets; however, they differ significantly for regulated Bitcoin products. This again confirms the long-term bias of institutional investors.
- Monthly growth figures tell an important story. CME lags behind Binance in average growth in 2020. But Bakkt is not far behind. And in May, Bitcoin futures saw the largest transaction volume ever. Since then, only CME and Bakkt have seen growth.
Bitcoin (BTC) Price Analysis
Bitcoin price shows early signs of a bullish break above $ 10,800 against the US Dollar. As long as BTC is above the 100-hour SMA, it can continue towards higher levels. According to analyst Aayush Jindal, Bitcoin is struggling to gain upward momentum and is facing a major hurdle at $ 10,920. At the time of writing, BTC was trading at $ 10,914.