Bedroom traders and analysts in the cryptocurrency industry have often expressed concern about Bitcoin’s inability to surpass its all-time high. However, professionals from the Chicago Mercantile Exchange (CME), TradingView, and TJM Institutional Services believe that the launch of a spot Bitcoin exchange-traded fund (ETF) will play a crucial role in driving Bitcoin’s price to new heights, fulfilling the dreams of traders.
Speaking at the Consensus conference on the future of crypto derivatives, TradingView’s general manager, Pierce Crosby, explained that derivatives have always been an essential part of crypto trading. However, trading on centralized exchanges between 2015 and 2022 resulted in many spot and margin traders facing high fees and slippage, causing them significant losses.
Crosby stated:
“The potential impact of a spot Bitcoin ETF on Bitcoin’s acceptance as a legitimate investment asset and its future price discovery cannot be underestimated. ETFs have attracted investors who were not comfortable with centralized exchanges. The deep liquidity of CME contracts and their growing volumes could greatly benefit Bitcoin’s price discovery.”
Bitcoin has often been seen as a hedge against inflation and a non-correlated asset to the stock market. While the correlation between Bitcoin and traditional markets remains a topic of debate, Jim Iuorio, the managing director of TJM Institutional Services, highlights recent U.S. Treasury auctions as a concerning indicator.
Iuorio commented:
“I believe the Federal Reserve will eventually have to cut rates and start easing again. Historically, loose monetary policy has been favorable for stocks, risk assets, and Bitcoin.”
Regarding Bitcoin’s perceived correlation with traditional markets, Crosby added:
“The crypto market does, at times, follow the movements of stocks, gold, and oil. It is also affected by internal issues like the collapse of the FTX exchange and major centralized DeFi businesses. However, once the market realizes that the crypto sector has little correlation to these factors, we will see the market start to recover.”
Disclaimer: This article is for informational purposes only and should not be construed as legal or investment advice. The views expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.