Institutional Investors' Interest in Crypto Money Market Reached the Peak

Institutional Investors' Interest in Crypto Money Market Reached the Peak

The year 2020 continues to be a year full of developments within the scope of cryptocurrency markets. The market, which mostly follows the developments of Bitcoin, has started to emerge with interest data starting from the second quarter of this year, with less known cryptocurrencies. While investors have been waiting for the third halving of hallows in the history of Bitcoin since the first years of the year, the coronavirus pandemic that surrounded the world caused the expectations to be shattered. In this period, which is complicated for individual investors, institutional investors continue to enter the sector with determined steps. After the coronavirus epidemic started threatening the USA, the Fed, whose attentios was turned, stated that they could supply unlimited money to the economy, while this measure was considered a very bad decision for some experts. The fact that the amount of money that can be transferred to the market is uncertain makes the dollar's depreciation in theory almost precisely possible, which has attracted investors to turn to safe harbor assets. The safest port was seen as Gold.

Great Interest From Institutional Investors

As Bitcoin is a limited supply, it has become an asset for investors who are thinking of turning to new assets. Institutional investors, who did not leave this move unrequited, started to show a level of interest in the sector that has not been done before. In the report shared by Arcane Research, corporate Bitcoin trades on CME, one of the world's largest financial derivatives exchanges, are on the rise. Open positions on the platform saw a historical peak by seeing $ 724 million. According to this data, CME alone accounts for almost 10 percent of all open positions in the cryptocurrency market. While the coronavirus epidemic does not lose its effect, geopolitical developments surround the world, and the fluctuations in many fiat currencies, especially the dollar, cause investors to focus more on supply-limited assets. Bitcoin, which gives the right to qualify as “digital gold”, also benefits from this interest.