Since the end of February, the volume of the CME Bitcoin futures market has declined significantly because of the global financial market is experiencing due to the growing fear of the outbreak of the Coronavirus extreme volatility.
At its peak in February, the CME Bitcoin derivatives market has recorded a staggering daily volume of 1 billion dollars, how researchers Skew Markets reports.
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The decline in the volume of Bitcoin and the rest of the crypto market traders fear that after weeks of strong dynamics, a phase of consolidation has begun.
Bitcoin is not immune to the stock market trend
In the last three days, there was both risky as well as risk-free investments to large spikes in Volatility after the Central banks of various economic packages published as an urgent response to the global economic slowdown.
Similar to the Dow Jones and the Asian stock market’s unprecedented volatility levels has shown, has also seen the Bitcoin price large price fluctuations.
If the volume on the Bitcoin market is low, it is easier to influence the BTC price, since the order books are relatively thin and traders are waiting for that BTC reached the extreme lows or highs in order to confirm support or resistance.
According to Alex Krueger, an analyst for global markets, is a result of the volume decline in the CME Bitcoin futures market, neither to Manipulation nor to Margin Calls. Rather, traders would look for in times of unpredictability, increasingly, security.
Krüger for this purpose:
“This has nothing to do with Manipulation. Not even with Margin Calls, otherwise the volumes would have skyrocketed (think of liquidations). Traders are likely to have shifted capital to other asset classes or cash to be redeployed and, therefore, the risk in times of extraordinary uncertainty reduced.“
Bitcoin has failed to show in times of increased geopolitical risks and the economic slowdown in the last three years.
If investors see a Stagnation in the world economy and a consolidation of the stock market before, they tend to be high-risk liquidate assets first.
Despite the widespread statement that Bitcoin is a safe Harbor, suggests that the low market capitalization of 160 billion dollars that the Asset will not be in the near future, be able to assert itself as a safe haven.
Therefore, the demand for Bitcoin in the extent, is rich in the the sale of risk assets continues, likely to go back. If this does not trigger a correction, it will go back to the volume, at least, and a difficult environment for a rally create.
Is crypto is vulnerable to a deep correction?
Technical analysts, the cycles successfully in several market in the crypto field have predicted, such as Pentarhudi, assume that the Bitcoin price back to the lowest support and the recent lows to test again.
Whales and investors, the trading with large capital, often wait until the market turns bad mood to the Extreme, either up or down before you trade on a larger time frame.
Due to the large number of buy orders in the range of 6,500 to 7,700 dollars for Bitcoin Trader can prepare in General for the foreseeable future on a substantial correction.
Bitcoin, currently at # 1 on the market capitalisation, has risen in the last 24 hours by 1.13%. BTC has a billion and a market capitalization of $162,72 billion, with a 24 hour volume of $36,59