Recent price surge causes Bitcoin futures volume to skyrocket

The past two days have finally brought some positive development to the crypto market. Bitcoin itself experienced a significant price stick, which led to another surge of Bitcoin futures volume.

Both CME and Bakkt noted a significant
increase in BTC futures volume, which are currently a lot higher than expected.
In fact, the growth is large enough to be the largest since March 16.

CME & Bakkt both with strong showings yesterday, largest volume since Mar 16th. pic.twitter.com/flQLsAqQNM

— skew (@skewdotcom) April 3, 2020

Investors’ interest in BTC may
have reawakened

On Twitter, a user going by the name of ‘skew’
reported that this is a positive indication for BTC. He said that the
investors’ interest in Bitcoin might be returning, despite the temporary
indifference.

While the growth of trading volume is
generally a good thing, it doesn’t necessarily mean that it will help the
market. The data does not say whether these traders are betting that the BTC
price will rise or fall. However, the fact is that longs are double all shorts
on major exchanges, so there is a reason to believe that the investors are
bullish on Bitcoin, after all.

And, of course, traders should also not forget
about macroeconomic indicators. They are just as important as the internal
market movements within the crypto industry. On the outside, however, the world
is still facing a financial crisis, that experts seem very pessimistic about.

Bitcoin price forecasts stilly
vary greatly

One of Morgan Creek Digital analysts thinks that BTC is likely to drop even lower
due to the pending halving. However, they also expect BTC to hit an entirely
new ATH by September 2020.

There are also plenty of bearish opinions and
forecasts as well. They point to the worsening outside elements, and believe
that this will impact crypto. Over 6.6 million Americans applied for
unemployment benefits in the last week alone.

All of this — and more — makes Bitcoin’s price
very unpredictable. The coin never before had a chance to perform in a
recession — assuming that this is one. With that in mind, the coin might go
either way, up or down.

With all that said, the investors did go long, and the trading volume of futures did surge. This could yet end up being a positive signal for the future of the coin and its price, but it’s worth remembering that there are no certainties with cryptocurrencies.