(Newswire.net — September 11, 2019) — The year 2018 ended badly for the cryptocurrency market, with Bitcoin closing around $3,700 and the entire market cap down by approximately 75%. Unexpectedly, the market rebounded this year, overcoming even the most optimistic expectations.
Since there had been no fundamental change in cryptocurrencies, the recovery had been attributed to crypto trading, as well as derivatives trading. Let’s examine a few facts and see whether platforms like MGC Logic, or futures contracts had any meaningful impact.
Futures contracts – a new trend?
According to the latest information provided by Forbes, the CME Bitcoin futures now account for $370 million in daily trading volume. This year, the Chicago Mercantile Exchange broke a few records with regards to daily rollover, as traders moved from the traditional cryptocurrency exchange platforms to a reliable provider of crypto-related assets.
With volatility on the rise in 2019, Bitcoin futures had averaged 7,237 contracts per day, as Tim McCourt, the managing director at CME and global head of equity products and alternative investments, mentioned at the end of last month. Global figures in Bitcoin futures are expected to further increase, now that the platform created by ICE – Bakkt – received the final approval from the CFTC, and it will start trading of physically-based Bitcoin futures contracts.
Crypto trading continues to expand
Alongside with futures contracts, crypto trading had been another important rising trend, since it allowed access to a more diverse set of cryptocurrencies. With futures mainly focused on Bitcoin, some of the people wanting to get involved in other markets can do that thanks to platforms like MGC Logic, which facilitate access to a broader range of cryptocurrency pairs, both fiat, and cross.
Although traders do not own the underlying instruments, traders are able to benefit from both rising and falling markets, in conditions of high volatility. A lot of features are offered, including educational material through programs like the MGC Logic cryptocurrency trading academy.
Are cryptocurrency exchanges a reliable place?
A Bitwise report from May rang alarm bells for cryptocurrency traders, after claiming that around 95% of the daily Bitcoin trading volume could be fake and artificially inflated by cryptocurrency exchange platforms. This was another fact proving that regulation for the industry is required.
We still do not have common ground among all nations when it comes to digital assets. Countries like Japan already consider Bitcoin a payment system, while China, on the other hand, had already banned all crypto-related activities. In the absence of regulation, crypto derivatives had been more appealing for traders and that is expected to persist until exchange platform will work based on a series of reliable regulatory measures.
In conclusion, dealing with futures contracts, or other types of crypto derivatives, seem to be more suitable, a fact proven by the flows which had been growing for the entire 2019. It will be interesting to watch how things will evolve, but it’s certain that with more derivatives there will more institutional money entering the cryptocurrency market and that could further support valuations.