The recent price surge in the crypto space could have been aided by the wall street, believes eToro analyst. The recent upward price rally in the crypto space has seen the majority of the cryptocurrencies making double-digit gains beginning on April 2nd.
However, no one has been able to zero upon the exact cause of such an unprecedented rise. Now, an eToro analyst says that the price surge had a domino effect on Bitcoin future trading. According to the data released by Chicago Mercantile Exchange’s (CME), Bitcoin future traded more than $560 million over the past week.
The analyst believes even though Wall Street does not deal in Bitcoin, it does have an impact on the overall market. The trading record at CME for Bitcoin future has been almost equivalent to the combined total of trading volumes on top 10 exchanges.
The CME’s Bitcoin future trading contracts also witnessed a record trading day right after the exchange registered an all-time high of more than 20,000 contracts, which is equal to about 112 thousand Bitcoin. Even though Bitcoin future contracts are usually settled in cash, and there is no involvement of Bitcoin, the analysts believe it definitely had an impact on the current market.
Thus, despite Wall Street not playing a direct hand in driving the prices, it definitely had a role to play. Apart from that Bitcoin Future contracts will be up for trading from next month and it definitely provides the necessary liquidity to the Bitcoin market and help it grow further.
The involvement of traditional players and Wall Street is definitely a great sign for the short term price movement, but more than that its great news in the long term as well. 2018 has already cut down the volatility of the crypto space which has attracted traditional wall street investors to the decentralized space, and many mainstream financial institutions are looking into the crypto space by either offering crypto-related services or by launching their own crypto token.
The recent bull run was definitely surprising to many but disappointing to none, the recent price surge has started to show similar patterns to that of 2017 price peak, be it trading volumes or market gains. Now the recent discovery made regarding the Bitcoin Future contracts and Wall Street is a booster in the gains, is surely going to turn the sentiments more bullish.