In the last couple of days, the BTC leaped up almost 20%. On Wednesday, the major cryptocurrency is trading at $44,040, while yesterday it cost almost $45,000D. The BTC capitalisation recovered at $824 billion. What has happened?
It seems like investors concerned with what is happening in geopolitics rushed into the crypto sector. The negative factors of the upcoming rate hike by the US Fed, as well as the conflict between Russia, Ukraine, and Western countries, are already included in the price.
There is an opinion that big-time buyers are now entering the BTC – they can remove the risks if the US Fed monetary policy tightens or make them more neutral. However, the number of retail investors is also quite big: the ruble crash and tough sanctions against Russia and its banking sector left investors no other choices other than digital assets.
Nevertheless, the sideways trend in the BTC didn’t go anywhere – in order to break the flat, the asset must fix above $55,000.
It should be noted that buyers may become much more active when geopolitical tensions decline.
Bitcoin chart onlineCitadel: ambitious plans
Citadel: ambitious plans
The founder of Citadel, Mr Kenneth Griffin, announced the company’s plans to enter the digital asset market in 2022 and start using cryptocurrencies. Back in 2017, Griffin was taking a hard-line stance on cryptocurrencies, comparing them with other market bubbles. However, he has changed his mind since.
CME is launching microfutures on BTC and ETH
Chicago Mercantile Exchange is planning to launch a new option product with a base asset based on micro futures on BTC and ETH. They might start trading on 28 March after the regulator approves them.
The difference between options and futures is that a holder has the right but not the obligation to buy or sell a base asset at the earlier-specified price before a contract expires. Options allow market players to hedge market events more flexible and offer them additional opportunities to optimise their investments.