Bitcoin (BTC) futures volumes have been consistently rising in the past few days. This shows that the interest of the institutional players has been gradually picking up.
A close study of the futures volume and price action can provide the experienced trader an insight into the likely direction of the markets. Increasing volumes with a sharp dip in price is a bearish sign as it indicates the initiation of short positions.
However, at times, a market that has been heavily shorted also provides an opportunity to enter a counter-trend trade because if the price does not fall, the traders are forced to cover their short positions, resulting in a short squeeze.
Though Bitcoin has been one of the worst performers in the past seven days, analysts remain bullish on its long-term prospects. John Todorov, CFO at London based cryptocurrency exchange DagX believes that the market capitalization of Bitcoin will overtake that of gold by 2028. He expects the decreasing supply of Bitcoin and money printing to boost prices past $500,000.
Tunisia becomes the first country to launch a Central Bank Digital Currency (CBDC). The Central Bank of Tunisia will digitize the Tunisian dinar, which will be issued on the Universa Blockchain. Gradually, other nations are also likely to follow suit in launching their own CBDC’s.