Bedroom crypto traders and analysts have consistently voiced their concerns about Bitcoin’s inability to surpass its all-time high. However, experts from the Chicago Mercantile Exchange (CME), TradingView, and TJM Institutional Services believe that the introduction of a spot Bitcoin ETF will play a crucial role in propelling BTC’s price to the levels that traders aspire to reach.
During a discussion at Consensus on the future of crypto derivatives in the market, Pierce Crosby, the General Manager of TradingView, highlighted that derivatives have always been an essential part of crypto traders’ experience. Nevertheless, trading on centralized exchanges between 2015 and 2022 resulted in spot and margin traders suffering from high fees and slippage, leaving them dissatisfied.
Crosby stated, “The potential impact of the spot Bitcoin ETF on BTC’s recognition as a ‘valid’ investment asset and its future price discovery cannot be underestimated.” Giovanni Vicisoso, the Global Head of Cryptocurrency Products at CME Group, shared a similar sentiment, emphasizing that ETFs have attracted investors who were previously uncomfortable with centralized exchanges. He also suggested that the deep liquidity of CME contracts and their increasing volumes could positively influence Bitcoin’s price discovery.
The role of Bitcoin as an indicator of economic trends has been a subject of debate among analysts from 2017 to 2021. Some believed that Bitcoin would act as a hedge against inflation and perform differently from the stock market. While opinions remain divided on this matter, Jim Iuorio, the Managing Director of TJM Institutional Services, pointed out that recent U.S. Treasury auctions serve as a warning sign, regardless of correlation.
Iuorio stated, “I believe the Federal Reserve will eventually need to reduce interest rates and implement easing measures again. Historically, loose monetary policy has benefited stocks, risk assets, and Bitcoin.” Crosby also acknowledged that Bitcoin’s price movements occasionally align with stocks, gold, and oil. Additionally, the cryptocurrency market can be negatively affected by internal incidents such as the collapse of the FTX exchange and major centralized DeFi businesses. However, once the market realizes that the crypto sector has little connection to these supposed correlations, the crypto market tends to recover.
Disclaimer: This article serves as general information and should not be considered legal or investment advice. The opinions expressed are solely those of the author and do not necessarily reflect the views of Cointelegraph.