Institutional exposure to cryptocurrencies via derivatives continued to grow in the second quarter, as CME Group’s newly launched Bitcoin (BTC) micro contract received considerable uptick in its first two months of trading.

Since launching on May 3, CME’s Micro Bitcoin futures contract has already surpassed 1 million contracts traded, the Chicago-based derivatives market announced earlier this week. CME executive Tim McCourt said the new product has been popular among institutions and day traders seeking to hedge their spot Bitcoin price risk.

Denominated at 0.1 BTC, the micro contract is one-tenth the size of one Bitcoin. By comparison, CME’s main Bitcoin futures contract unit is 5 BTC.

"We've seen more institutional volume than we anticipated, which shows that the timing was right for a smaller bitcoin contract,” said Brooks Dudley, the global head of digital assets at ED&F Man Capital Markets.

Related: ‘Bitcoin will go all the way to $160,000 this year,’ says Celsius CEO

Institutions have reduced their long-term exposure to Bitcoin and other cryptocurrencies during the latest correction, with outflows totaling $79 million last week, according to CoinShares data. In the case of BTC, newly liquidated coins are being scooped up by long-term holders who remain convinced in the long-term prospects of their investment.

More activity in the derivatives market suggests traders are hedging their positions, speculating on the short-term directional movement of Bitcoin or both. Although derivatives trading has increased institutional exposure to Bitcoin, it has also become a source of stress for spot holders. As Cointelegraph reported, Friday’s $6 billion in Bitcoin and Ether (ETH) expiries created considerable friction in the market, with some traders expecting extreme volatility.


The Bitcoin price mostly traded between $30,000 and $35,000 last week. Source: Cointelegraph
High volatility was reported in the latter half of the week, with the BTC price falling 13.6% peak-to-trough between June 24-26.

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The chief investment officer of asset management firm Guggenheim, Scott Minerd, thinks he knows where the real bottom of bitcoin’s price is. He warns that the price of the cryptocurrency could fall to the $15K level.

Guggenheim’s Scott Minerd Sees Bitcoin Bottom
The chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, is back with another bearish prediction for bitcoin and a forecast of where the “real bottom” of the bitcoin price is.

Minerd is also the chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. Guggenheim Investments has about $270 billion in total assets under management across fixed income, equity, and alternative strategies.

He said in an interview with CNBC Friday:

The real bottom, when you look at the technicals, $10,000 would be the real bottom. You know, that’s probably a little extreme, so I would say $15,000.

This prediction followed his comment Tuesday on Twitter when he wrote: “Look for more declines in crypto as bitcoin breaks through support. Next likely support level is $20,000.”

Minerd explained Friday that the recent BTC price rally has been supported by significant “central bank liquidity.” He cautioned that bitcoin’s price will fall as that liquidity fades.

The price of bitcoin dipped below the $30K level last week. At the time of writing, BTC stands at $31,583 based on data from Bitcoin.com Markets.


The Guggenheim CIO proceeded to advise that he “wouldn’t be in a hurry” to jump back into bitcoin at $20,000, noting that the cryptocurrency should consolidate sideways for a couple of years before it moves higher. He opined:

I don’t think people need to be anxious to be putting money in bitcoin right now.

Minerd has made several bearish predictions about the price of bitcoin in the near term. In May, Minerd warned of a massive sell-off in bitcoin after alerting investors to a major BTC correction in April.

Despite his short-term bearish forecast, Minerd is bullish about bitcoin in the long run, believing that the price of the cryptocurrency could reach $600,000. “We do a lot of fundamental research. If you consider the supply of bitcoin relative … to the supply of gold in the world … If bitcoin were to go to those kinds of numbers. You’ll be talking about $400K to $600K per bitcoin,” the CIO described.

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Bitcoin (BTC)  price received a boost as news that lawmakers in Paraguay plan to present a bill to make BTC legal tender spread across Twitter. Shortly after the unconfirmed news surfaced on Twitter, Bitcoin price rallied to $35,289 before slightly pulling back below the key short-term resistance level.

Congratulations Paraguay

• a bill has been submitted to make #BITCOIN legal tender

• reading likely to occur on July 14th

• they wish to be a crypto hub

• promotion of green energy mining

• some interest from Argentina & Brazil now too

— djThistle (@DJThistle01) June 24, 2021
While the cryptocurrency Fear and Greed Index still indicates a sentiment of Extreme Fear, it’s worth noting that the measure has risen from 14 on June 23 to 22 on June 24 as traders begin to view the drop below $29,000 and Bitcoin's rising open interest as signs that the current corrective phase may have ended.


Cryptocurrency fear and greed index. Source: Alternative
While traders' sentiment may have improved slightly, Cointelegraph analyst Marcel Pechman suggested that investors could be waiting for the $6 billion in Bitcoin and Ether (ETH) quarterly futures and options to expire on June 25 before making a more decisive move.

Stocks reach new record highs, altcoins rally
The crypto market wasn't the only market to rally today. Traditional markets also rose to new highs after U.S. President Joe Biden revealed that he had reached an agreement on a $953 billion bipartisan infrastructure spending plan with the Senate.

Following the announcement, the S&P 500 and Nasdaq each rallied to new record intraday highs and closed the day up 24.65 points and 97.98 points respectively, while the Dow gained more than 322 points on the day.


Daily cryptocurrency market performance. Source: Coin360
As one would expect, altcoins also surged higher as Bitcoin price and traditional markets moved higher. Ether (ETH) rallied back above the psychologically important $2,000 level, while Tron (TRX) and Celo gained 26% and 28% respectively. CELO's move appears to be driven by the listing of its Celo Euro (cEUR) stablecoin on KuCoin exchange.

Prior to the recent price rise, VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for CELO on June 22.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.


VORTECS™ Score (green) vs. CELO price. Source: Cointelegraph Markets Pro
As seen in the chart above, the VORTECS™ Score for CELO climbed into the green and reached a high of 73 on June 22, one hour before its price began to spike 56% over the next day. The VORTECS™ Score turned green again on June 24, reaching a high of 74 as CELO began to rally another 25%.

The overall cryptocurrency market cap now stands at $1.4 trillion and Bitcoin’s dominance rate is 46.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Members of Tiger 21, a network of over 900 wealthy investors, are putting in more money in cryptocurrency markets though still at low levels. Members are investing more directly in blockchain and cryptocurrencies, giving them the same 1% to 3% allocation in portfolios like gold which has been seen as an instability hedge. They aren’t much concerned about the recent decline in price either. During this latest sell-off, the price of Bitcoin dropped under $29k, down about 55% from its all-time high in April. Ether went as low as $1,700 while the total cryptocurrency market cap went to $1.2 trillion, which peaked at nearly $2.6 trillion in mid-May. Michael Sonnenfeldt, founder of the network of entrepreneurs, investors, and executives who have an average of $100 million in assets said,

“Bitcoin has always had an extraordinary level of volatility, and in that context, the recent drop is not dramatically out of line with historic dips.” “For those invested in Bitcoin, the dips are of concern but are not yet eroding their long-term view of Bitcoin’s potential.”
In the short term, some members are investing in the Grayscale Bitcoin Trust (GBTC). “Over time, our members will ferret out longer-term private equity deals,” Sonnenfeldt said.

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With such a large spike in bitcoin sentiment recently, a bitcoin rally could be underway.

Bitcoin has been fluctuating between $30k and $40k for a while now with no real significant movement either up or down. This has come in light of the market crash experienced over a month ago. The asset lost about 50 percent of its value and a lot of investors have had to take a step back and reevaluate their crypto positions due to this.

Related Reading | Hall Of Fame Investor: Bitcoin Is In A “Bear Market”

While significantly large drops in price in a short period of time is not new to crypto-natives, it is new to the investors who have just got in. Every bull market, bitcoin experiences a large influx of first-time investors. Most of them FOMO-ing into the market. Once the expected crashes start happening, they get scared and start getting rid of their coins.

What An Increased Bullish Sentiment Could Mean
With an asset as volatile as bitcoin, price movements can very much be tied to investors sentiment. Humans are mostly governed by emotions so it is no surprise that this spills out into other parts of our lives like investing. Feeling very positive about something is a reason why a lot of investors buy assets.

A large portion of the decision making can be attributed to research but sentiment, either good or bad, can most often be a deciding factor.



Bitcoin price crashed about 50% in May | Source: BTCUSD on TradingView.Com

Once people start feeling like the market is about to have a good run, they invest into the market. This in turn shows other investors that people still have faith in the coin. And the cycle continues leading to a bull run.

How Fear And Greed Affect Market Prices
Investors are mostly driven by two emotions when they are putting money in the market; fear and greed.

When investors are scared of what an asset might do, this could lead to them putting way less money into that asset than they normally would. Not wanting to lose their money. It does not matter if there is a reason to be scared of not. If investors do not have faith in an asset, they will not put money in it.

Then on to greed, this is the ultimate market mover.

The dictionary definition of greed is as follows; an intense and selfish desire for something, especially wealth, power, or food.

Investors are in the market to make money, as much as possible in as little time as possible. While long-term hodling might be the best move when it comes to investing, it doesn’t change the fact that people want money now. And they want a lot of it.

Related Reading | MicroStrategy Sells $500 Million Notes To Buy Bitcoin

This is where greed comes in. The more money you want to make, the more money you have to put into the market. The more money put into an asset, the higher the value of that asset.

Arcane Research has a Fear and Greed Index with which it measures investors fear relative to greed. And it has been in the extreme fear zone for quite a while. This has been in line with market prices. Bitcoin has been stagnating a bit for a while. People are not putting money in it.

But a recently released index from Arcane Research has shown that investors sentiment has finally moved out of the extreme fear into fear. This signals that investors are finally starting to come out of hiding.



 Fear and Greed Index up from  13 last week to 38 | Source: Fear and Greed Index on Arcane Research

Lightning Network Sets New Record
The Bitcoin Lightning Network exceeded 1,500 BTC for the first time ever yesterday on the network.

Speculations are this spike is due to the increased number of small bitcoin transactions being made on the network after El Salvador made bitcoin a legal tender.

With optics like these and news of adoption rocking the space, a market rally may be in the horizon for bitcoin.

Featured image from Forbes, bitcoin chart from TradingView.com, Fear and Greed Index chart from Arcane Research

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 আমার একটু জানার বিষয়, আমাদের এই ক্রিপ্টোকারেন্সি ফোরামে কিছু সেকশন রয়েছে । সেকশন গুলো হল :

ক্রিপ্টো ডিসকাশন ফোরাম
এলার্টকয়েন টক ফোরাম
ক্রিপ্টোকারেন্সি ইকোসিস্টেম
ক্রিপ্ত প্রজেক্ট
ফেদারড প্রজেক্ট
মার্কেটপ্লেস
ট্রেডিং এন্ড ট্রেডার্স
ফেদার ডিসকাশন
লোকাল বোর্ড
এখন আমার কথা হচ্ছে সিগনেচার এর জন্য এবং ব্যাঙ্ক আপ করার জন্য  আমি কি এইসকল সেকশনে পোস্ট করতে পারবো নাকি শুধু ক্রিপ্টোকারেন্সি ইকোসিস্টেমে পোস্ট করতে হবে যদি কারো জানা থাকে তাহলে অবশ্যই বিষয়টি সুন্দরভাবে তুলে ধরবেন। আমি আশা করব এই বিষয়গুলো যদি সবার জানা থাকে তাহলে আমাদের ফোরামে স্পামিং হবে না ধন্যবাদ ।

 আমার সিনিয়র ভাইদের কাছ থেকে জানার বিষয়  বেশিরভাগ বাউন্টিতেই  টুইটার ক্যাম্পেইন, টেলিগ্রাম, লিংকডইন ক্যাম্পেইন ভিডিও ক্যাম্পেইন, আর্টিকেল ক্যাম্পেইন এবং ট্রানসলেশন ক্যাম্পেইনে  কাজ করার কথা বলা হয় । টুইটার,  টেলিগ্রাম, এবং লিংকদিনের কাজটা আমার জানা আছে বাটভিডিও ক্যাম্পেইন আর্টিকেল ক্যাম্পেইন এবং ট্রানসলেশন ক্যাম্পেইনে কিভাবে কাজ করতে হয় সেটা যদি একটু বিস্তারিত বলতেন তাহলে আমার মথ নতুনরা  অনেক উপকৃত হতো ।
 ধন্যবাদ ।