Investors Revisit Bitcoin Futures
Bitcoin (BTC) is back in the spotlight, catching the attention of investors as futures markets experience their highest trading volumes since they plummeted below $4,000. According to data from Skew, the best performance from non-exchange operators of Bitcoin futures was recorded on April 2, hinting that market optimism is on the rise once more.
CME and Bakkt: A Comparative Resurgence
In the race for dominance in the futures market, CME Group reported a mouthwatering $347 million in trading volume for Thursday. Not to be outshone, Bakkt enjoyed a respectable $12 million in its physically settled futures along with an additional $7.7 million for its cash products. To say that they’re making a comeback is an understatement; they’re practically sprinting!
The Market’s Rollercoaster Ride
The past few weeks have been a bumpy ride, with investors panicking as Bitcoin’s price took a nosedive last month, reaching around $3,600 in just hours. But fast forward to Thursday, and prices have crested approximately 93% above March’s rock-bottom, with BTC/USD sitting comfortably at around $7,170.
Corona Crisis and Bitcoin’s Resilience
Investor confidence appears to have made a miraculous recovery despite the continuous market volatility caused by coronavirus. Analysts suggest that Bitcoin’s initial plunge can be attributed to investors liquidating their holdings to cover stock market losses. Jonathan Leong, co-founder of trading platform BTSE, exclaims his bullishness, claiming Bitcoin is showcasing remarkable resilience amidst what he deems could be the worst economic crisis yet.
“#Bitcoin showing extraordinary resilience in what could possibly be the worst economic crisis yet, and it’s just getting started!”
Critics of Economic Solutions
Even skeptics of Bitcoin have voiced their opinions regarding the government’s controversial methods to tackle the economic fallout of the crisis. Following the United States Federal Reserve’s infusion of a staggering $6 trillion into the economy and the notion of infinite money supply, many have started questioning the sustainability of fiat currency.
Critics, including gold investor Peter Schiff, argue that bailing out unsustainable businesses, like airlines, with what many deem to be “worthless money” initiates a cycle of dependency. On Friday, Schiff elaborated:
“Giving airlines money to keep workers employed they no longer need is not only a waste of taxpayer money, but it leads to miss-allocations of labor resources, and a less efficient and competitive American airline industry that will be in constant need of future bailouts.”
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