Contrary to popular belief, regular retail investors continue to play an important role in pricing — so in a recent interview with Bloomberg said the General Director of Binance. At the end of 2017 Bitcoin reached the mark of 20 thousand dollars only due to retail buyers. At the same time market analysts predicted a jump of up to 30 and even 50 thousand, if cryptocurrencies will come futures on Bitcoin, ETF and institutional capital. While it is not.
But the first half of 2019 have allowed kriptosistem to relax from a 15-month bear market. Approximately since April, Bitcoin has gone steadily into growth, which caused quite a lot of discussion. According to some analysts, the current bull market we are bound to institutional investors. This is partly true, as Fidelity, Bakkt, TD Ameritrade, Goldman Sachs, JPMorgan and countless venture capitalists have openly shared their intentions to invest in the cryptocurrency sector.
And due to this recharge, many expect a re-jump to 20 thousand. Moreover, until the end of 2019 coin will supposedly break the mark of 40 thousand dollars.
Binance relies on retail investors
The head of the exchange Binance Chanpen Zhao did not agree with this theory.
We do not observe more rapid institutional inflows. Here, rather, play the role of both parties. At least, in 2019 while this was not.
According to Canina Zhao, trading volume among institucionales and retail investors is increasing, and the latter now account for up to 60 percent of transactions in Binance. These indicators practically do not differ from the previous year, despite the arrival of megacompany type Bakkt, JPMorgan and Goldman Sachs.
Says Zhao, maybe the situation will solve margin trading, which Binance launched on 11 July. A new option allows traders to open positions with a size of three times the amount invested.
See also: Margin trading is very dangerous. And here’s why.
According to the statistics of the exchange, the first day after running the tool more than 10 thousand people have used leverage to at least $ 15 million. On other exchanges (e.g. Kraken and Bitfinex) traders can involve leverage in the amount of from X5-100 from your balance. Perhaps, on their activity can be attributed to the 36 percent growth of Bitcoin prices since the beginning of June.
The market needs volatility and trading volume
Chanpen Zhao argues that, due to the increase in the number of kryptomere with the option of margin trading by the end of the year most people will in varying degrees, to use the shoulder. And, he believes, it is absolutely safe. Of course, marginally should lead to increase in trading volumes and potentially higher volatility. But now the volume of trade correspond exactly to the needs of the market.
In our cryptodata of hontarov you will find lots of other useful information.
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