Bitcoin

Futures Market Won’t Let Bitcoin See Another Bull Run, Founder BlockchainBTM

Javad Afshar, the founder of BlockchainBTM, a crypto ATM operator in the United States, and a seasoned financial trader doesn’t anticipate a bull run for bitcoin similar to 2017 anymore and considers the futures market for bitcoin is the reason. Talking to BlockPublisher, he said;

This 2017 phenomena happened because there was no instrument for the speculators to short the market. Now that we have the future markets for bitcoin, speculators can short the market whenever it gets out of hand. 

Short selling the market is betting against the market and it is done when an investor feels that the price of an asset is going to go down. The futures market opens the doors for speculators to bet against an asset, in this case, bitcoin. If the price of bitcoin shoots up, speculators can short it, slowing down the spike.

2017 proved to be quite happening for the world’s leading cryptocurrency in terms of market capitalization, bitcoin. The asset almost touched the $20,000 mark as it attracted a lot of attention from the financial world. But since then, it has largely been a downhill road for the digital asset. Bitcoin is floating around in the $3,000s for quite some time now. The bear run of the market has persisted for over a year. People who are holding bitcoin and other crypto assets are just hoping for another bull run to appear. When asked if we are going to see another bull run like 2017? he said;

We do not anticipate another wild bull run on bitcoin such as the one that happened in 2017.

Since that bull run, bitcoin has gone through a lot of important developments. Advancements are being made regarding the future markets for bitcoin. The role of speculators has come into play. Even if the market bottoms and starts moving upward, it’s upward hill is expected to be gradual and not sudden like 2017. He said;

If the bitcoin price has bottomed at around $3,000 and assuming its in the bull market, the price will only go up gradually.

In the regulatory arena for cryptocurrencies, platforms like Bakkt, which provide people with a global and secure ecosystem to store, spend, sell and buy cryptocurrencies, are also coming out on the scene. The wild run of bitcoin is now being taken under a bit of control. People are more aware of the risk associated with bitcoin and as a result, not a lot of people are hurling towards this market as before.

Institutional interest is being developed regarding the asset on the other hand. All of this signifies that bitcoin is now in its maturity days. The Wild West ride for the asset is over. The focus is being shifted from just the price only to the technology lying underneath and the official frameworks surrounding bitcoin. In order to develop a more positive image of the asset among the institutional investor community and the general media, advancements are being made in order to tackle the issue of volatility associated with bitcoin. Assets like stablecoins have emerged out on the scene.

Bitcoin has matured quite a lot over the past year, it seems unlikely that we will see another bull run like 2017 because people are more aware of the risks associated with the asset now than ever.

SEE ALSO: Bitcoin (BTC) Price Remains Crucial To Mainstream Adoption As Shown By 2017 Volumes

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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