Bitcoin has been on a tear in 2019 with its price peaking at $13,700 back in June. However, its stellar price rally doesn’t reflect the number of addresses sending BTC to cryptocurrency exchanges, which has been declining since 2017.
Retail investors are sleeping on Bitcoin
According to a recent study by London-based Blockchain startup TokenAnalyst, the trading volumes of Bitfinex, Binance, and other major cryptocurrencies fall short of matching the 2017 numbers.
TokenAnalyst Sid Shekhar attributes this lukewarm trading activity to the lack of retail interest in crypto. This flies in the face of those who believe that Bitcoin has already established itself as a safe haven asset
If we go by the ‘Bitcoin as safe haven in times of recession’ narrative, the number of new users/buyers should actually be increasing.
Earlier, Fundstrat’s Tom Lee predicted that Bitcoin crossing the $10,000 would trigger the highest level of FOMO, but it looks like the retail sector is yet to get hooked on crypto in 2019 even in the five-digit reality.
Meanwhile, institutions are stepping in
While cryptocurrency exchanges are struggling to bring back the days of their former glory, institution-oriented trading platforms are reaching new highs. As reported by U.Today, the Chicago Mercantile Exchange (CME) has witnessed a whopping 132 percent in the number of Bitcoin futures contracts compared to 2019.
VanEck and SolidX are expected to launch a limited version of a Bitcoin ETF for institutional investors. On top of that, ICE-baked exchange Bakkt will roll its Bitcoin futures by the end of September.