- Investors are having a hard time believing in the future of cryptocurrency amid the tumbling price of bitcoin since May this year
- Bitcoin Futures is now being traded based on the current price of the crypto as investors are not willing to invest in the projection of what the coin could be in weeks, months or years time
- Bitcoin has been losing value in the cryptocurrency market since May and struggling to recover its bullish run of 2020 and first quarter of 2021
Aside from the daily transactions based on the current bitcoin price, the futures trade is one segment of the cryptocurrency market that has attracted investment.
In utures trade, investors buy bitcoin at a projected price for bitcoin's future, but since the crypto began a price correction in May, the sentiment of a growth future has dropped.
This shows investors are doubtful of bitcoin's resurgence since the 35% drop in the crypto value last month and is down by about 12% this month.
It was gathered that investors trading in bitcoin futures are pricing the digital coin at its current value rather than based on the future projection of what bitcoin could sell for.
Arcane Research, a Norwegian cryptocurrency analysis firm, on Tuesday, wrote that:
“Futures traders have started to price bitcoin contracts that expire in three months almost equally as the current spot price."
Arcane said this indicates a more bearish sentiment among futures traders. On Monday night, bitcoin was down by 1.46%, trading at $33,595.09. In the last 24hours, bitcoin was down at $31,035.49.
Meanwhile, Legit.ng had previously reported that Stanbic IBTC founder, Atedo Peterside, advised the Federal Government to negotiate with Twitter following the ban.
Peterside said the government should settle the disagreement in order to avoid chasing local and international investors away from the country.
The investment banker had previously criticised the ban placed on Twitter's operation in Nigeria, stating that the government is fast in taking decisions that hurt Nigerians.