Investors are having a hard time believing in the future of cryptocurrency amid the stumbling price of bitcoin since May this year.
Bitcoin Futures is now being traded based on current price of the crypto, as investors are not willing to invest in projection of what the coin could be in weeks, months or years time.
Bitcoin has been losing value in the cryptocurrency market since May, and struggling to recover its bullish run of 2020 and first quarter of 2021.
Aside from the daily transactions based on current bitcoin price, the futures trade is one segment of the cryptocurrency market that has attracted investment.
In futures trade, investors buy bitcoin at a projected price for bitcoin’s future, but since the crypto began a price correction in May, sentiment of a growth future has dropped.
This shows investors are doubtful of bitcoin’s resurgence since the 35 percent drop in the crypto value last month and is down by about 12 percent this month.
It was gathered that investors trading in bitcoin futures are pricing the digital coin at its current value rather than based on future projection of what bitcoin could sell for.
U.S. officials: “said on Monday they have seized $2.3 million in bitcoin paid to hacker group DarkSide.”
Musk: had earlier said that he backed that concern, especially the use of coal, which has the “worst emissions” of any fuel. “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,” he had tweeted.
Arcane said this indicates a more bearish sentiment among futures traders.
Currently, bitcoin is down by 1.46 percent, trading at $33,595.09. In the last 24hours, bitcoin was down at $31,035.49.