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Demand for Bitcoin Futures Rises, Setting Up a Potential Great Year for Investors

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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The cryptocurrency market rolled into 2020 with some significant momentum. Bitcoin was finally able to break the $8,000 threshold, and while there has been a bit of volatility over the past few days, the premier digital asset has still been able to rise by 13 percent since the year began. 

However, there’s even more good news for investors looking to get a piece of the asset, as the desire for Bitcoin futures seems to be on the rise as well. Quoting data from Finance Magnates reported earlier this week that the demand for Bitcoin futures had risen significantly since the year began. 

CME Releases Options and Bakkt Continues a Strong Run 

As the news medium explained, some of this rise has been attributed to the upcoming launch of Options on the futures offered by the Chicago Mercantile Exchange. A note from researchers at banking conglomerate JP Morgan also reported that the underlying futures have risen in sales activity as well, further pointing out that open interest (a metric that shows the level of market activity on an asset) on the futures has risen by about 69 percent since the year began. 

“This unusually strong activity over the past few days likely reflects the high anticipation among market participants of the option contract,” the researchers concluded.

Bakkt, another company that launched Bitcoin futures contracts last year, has seen some commendable performance as well. Although an all-time high on volumes of contracts sold was recorded on December 18 (when it sold 6,601 contracts in a day), the company has still been able to perform pretty well so far. 

The Best Time for Investors to Migrate

The news is coming at a time when investors in the traditional stock market seemed to be on edge. Last week, the Dow Jones retreated from it’s all-time high after the Bureau of Labor Statistics revealed that jobs created in December were much lower than initially expected. At the same time, Wall Street strategists have recommended that investors should seek out stable dividend-paying investments as they progress into 2020, forecasting that the year might be a volatile one for market participants. 

For those looking to diversify their investments and protect their wealth, Bitcoin might be the best bet. We already know that it was the best-performing investment vehicle of the 2010s, but 2020 could be a watershed moment in the asset’s history as well. Unlike traditional stocks, analysts are expecting that Bitcoin will see a significant increase in its value, thanks to the halving that is expected to occur in May. 

If Bitcoin rises and its attractiveness as an investment product rises along with it, then existing investors might be smiling to the bank quite a lot this year, while skeptics could get the proof they need to migrate into the asset. When the latter finally decided to do so, there’s every chance that they’ll meet a fledgling futures market waiting for them.

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