According to the founder of BlockchainBTM- a Crypto ATM in the US, Javad Afshar, Bitcoin Futures will influence a breakout that is needed to usher Bitcoin into a bullish cycle like that of 2017. From this point of view, Bitcoin Futures will limit gains during price upsurges. Hence, the entire Crypto market could be less bullish as BTC has a majority market dominance.
On the flip side, this would stabilize the market and allow more risk-averse investors especially at the retail level to participate in Digital Token trading as risks of sudden plunges would be eliminated as well. On the other hand, institutional investors would feel confident to participate in Crypto market transactions given the long-term stability that Cryptos are guaranteeing.
The Past Week Saw Phenomenal Gains
On February 17th, 2019 at 16:12 UTC, the total market capitalization was $121 billion. However, 7 days of trading later at 14:12 UTC, the market capitalization is at $142 billion. This is a significant growth that has been very hard to be attained following prolonged bear runs that have eroded prices across the Crypto market. Despite the downward forces that have eroded the gains between 14:12 UTC and 19:12 UTC, the market cap at $139 billion still represents a significant gain for the period under review.
In the perspective of different Cryptos, BTC in the last week gained from $3,600 to highs of $3,900 before marginally retracting to the current $3,800. The level of resistance has been established at $4,000 and a breakout could mark the beginning of a bullish trend across the market.
Positive Sentiments Revolve In The Market
Bullish sentiments are the major news making rounds about Crypto markets. Many experts are expressing confidence that the Digital Tokens have grown considerably in the last year and that investors and communities have to change their approach (invest more) on Crypto investments.
Some of the factors that are used by analysts as the basis of the conclusion that Crypto markets have evolved are issues such as Bitcoin Futures, prospects of Bitcoin ETFs, constant upgrades that are making Cryptos usage more adaptable to real life situations, etc. Hence, many participants believe that a radical market reversal is in the offing.
Effects Of Bitcoin Futures Might Yield The Opposite Results
A Bitcoin Future basically allows investors to speculate against bullish market trends and influence both short term and long-term growth. Because of its growing popularity, this factor will allow investors to dictate future prices which has the propensity to short the market.
Mr. Afshar believes that the absence of Bitcoin Futures led to the market growth of 2017. But since futures are now in place, they will fight against volatilities and cushion investors from both price plunges and upswings as well. It is important to note that the Bitcoin Future will transform the market into maturity. However, since the price of BTC has already bottomed out, it is almost certain that there would be a bullish run but not the galloping trend of 2017.