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Latest BTC Halving Saw Shift in Bitcoin Market Dynamics

It’s been a month since the 2020 Bitcoin miner reward halving. It seemed that, ever since, a lot has changed in the dynamics of how the world’s biggest cryptocurrency works. These changes range from trader and investor behavior to even growth of interest from institutions, exponentially so. IT seems that the Bitcoin market participants are facing a whole new reality after the most recent halving event.

Atypical Behaviours

The halving itself didn’t cause an instantaneous price surge that many had expected from the event, citing the previous two halvings. While some may be sour about it, it may have done Bitcoin some good, as the market didn’t crash directly after it like the great Crypto Winter of before. Furthermore, a few critical aspects of these changes stand to have the potential to be a pivotal aspect of Bitcoin as it enters a new stage of its asset class.

There are, in fact, a few that stand convinced that 2020 holds the fundamentals needed to boost Bitcoin immensely in regard to visibility and price. Bloomberg recently published a report that estimated that Bitcoin could even surpass the record prices it managed to gain in 2017, estimating a price as high as $28,000. Simon Dedic, the co-founder of the Blockfyre crypto analysis firm, doubled down on an even higher estimate, stating that there stands a potential for Bitcoin to be valued at $150,000, but only if a manic bull run occurred.

Massive Increase In Derivative Interest

Further trends shifting after the halving occurred within the Chicago Mercantile Exchange and its regulated Bitcoin derivatives offerings. 2020’s start showed that there were decreasing volumes for this offering, but the halving event caused a complete reversal.

Another critical aspect is Paul Tudor Jones, a veteran hedge fund manager, showing his new stake within Bitcoin, as well as showing appreciation for it overall. He made it clear that he wasn’t for or against Bitcoin, instead stating that a profit-maximizing strategy needs the fastest horse, which he concluded was Bitcoin.

Sixteen Times The Options Trading Volumes

Skew, a crypto data provider, had further revealed that the CME saw record figures shortly after the halving event occurred. This trend went as far as May, and CryptoCompare’s May exchange review showed that the CME saw volumes in its Bitcoin derivatives shoot up an incredible 59%, hitting the $7.2 billion mark. The document went into detail, explaining that the CME experienced an all-time-high in BTC options contracts, 5,986 in total. When comparing it to April, that’s sixteen times the volumes, according to the document.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.