According to reports, Bitcoin is slowly becoming a popular asset among traders globally and is ranking among top traded assets. In May, it ranked the second most traded asset on the CME market by open interest ratio and volume.
The future of Bitcoin has an open interest ratio and volume of 303 percent, second to Dow Future, which has 333 percent. Gold has been a top competitor to Bitcoin as a store of value had only 91 percent. Other major fiat currencies ranked less in the market. This is an indication that Bitcoin is becoming more accepted and a traded asset on the CME market globally.
In Early May, Bitcoin was the best performing asset globally, exceeding oil and stocks with a significant margin. During the same period, the global market was at a rough time and Bitcoin had a record increase of 67%. According to analysts, this has been a trend in the past years, and this year’s performances are not unusual.
According to Tom Lee, Fundstrat’s head of research, the performance of Bitcoin is not correlated with other tradable assets or stocks. Stocks suffer due to reasons such as trade war between the US and China, which has intensified, but it’s evident that these factors don’t affect the performance of Bitcoin. Bitcoin has not been affected because it is not subject to political control.
The fact that cryptocurrencies are not subject to political control has made cryptocurrencies widely accepted, and the acceptance is increasing daily. Bitcoin is not the only digital asset becoming popular; altcoins have also become entirely accepted for the services they can offer.
For instance, XRP is the world’s leading token for payment on ripple blockchain. Ripple is about to outstand many existing payment platforms that have existed for decades. Ripple offers a more efficient, faster and incredibly cheap way of transferring wealth worldwide.
On the other hand, Bitcoin is becoming a preferred store of value to replace gold, which has existed for centuries. If this trend is maintained, Bitcoin will become the number one store of value globally.
Do you think Bitcoin will become the number one store of value?
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