Reasons to Be Bullish About Bitcoin & Other Cryptocurrencies, According to Prominent Economics Professor

Panos Mourdoukoutas, an economics professor at the University of Pennsylvania, has argued that there are “a couple of signs” that the current cryptocurrency market rally could be “sustainable.”

Mourdoukoutas, who earned his Phd from the Stony Brook University, noted in a Forbes post (published on February 21st) that digital asset prices may continue to increase because the latest market rally “extended to the entire cryptocurrency chain.” Mourdoukoutas pointed out that the value of “only seven cryptocurrencies out of the top 100” depreciated in the past week.

Commenting on the recent surge in cryptoasset prices, Michael Noel, the CEO of Blockchain Consultants, remarked: 

Interestingly, it appears that the momentum behind the recent Bitcoin rise comes more from fiat and stablecoins than from other cryptocurrencies. This move from fiat currencies shows at least some consensus that BTC value, is better long term than in traditional currencies.

Bitcoin Usage Has Been "Really High Recently"

Noel added that the latest digital asset rally may also be partially attributed to increased enterprise interest in the crypto market. Established financial service providers and organizations including Western Union, the leading money transfer company, has been working closely with crypto firms such as American fintech Ripple Labs - in order to expedite cross-border payments.

Nasdaq, the world’s second largest stock exchange, recently introduced a new bitcoin (BTC) and ether (ETH) tracking index. Meanwhile, Mastercard has been working with crypto payments solutions provider, Stellar - in order to make it easier to send money globally.

Bitcoin acceptance rates also appear to be increasing as Mati Greenspan, the senior market analyst at eToro, a leading social trading platform, revealed recently that BTC usage has been “really high recently.” Additionally, Greenspan mentioned that Google searches about bitcoin and other cryptocurrencies have picked up again.

JPMorgan Coin May Have Helped Legitimize Crypto Industry

Jeff Ramson, the founder and CEO of PCG Advisory, Inc., a company “dedicated to adding value in the small-cap, micro-cap and blockchain/cryptocurrency marketplace”, remarked:

Each day we are hearing of more well-known fiduciaries, banks, funds, etc. investing into crypto/blockchain infrastructure, and I believe Bitcoin is the proxy for most who want to have exposure to the crypto asset class, while these markets develop.

Ramson continued: “While not significant to the price of Bitcoin, in reality, [the introduction of JPMorgan’s own cryptocurrency or coin] has also given additional credibility to the space, which is helping with the price of Bitcoin; and I believe, this acceptance will help sustain the crypto asset class for the long run.”

OKEx to Launch Bitcoin Options Trading Before Year's End

Popular cryptocurrency exchange OKEx has announced it’s set to launch bitcoin options trading later this month on December 27, with a simulation set to begin on December 12.

As detailed in a press release shared with CryptoGlobe, the move will see OKEx become the first cryptocurrency exchange to offer crypto-to-crypto trading pairs, spot, futures, perpetual swaps, and options trading in a single platform.

OKEx will offer its traders both buy and write (sell) options which “enhances trade flexibility and market transparency with trade prices that closely reflect market trends.” Other bitcoin options platforms so far only offered buy options. The exchange’s release notes it’ll use a rigorous anti-manipulation system “designed to prevent close price manipulation.”

OKEx’s CEO, Jay Hao, said:

We have been seeing the increasing demand of crypto derivative products across all our client segments, especially from our institutional clients, which have shown the fastest growing demand in derivative trading, especially on futures or perpetual swap. We aim to provide the broadest range of trading and risk management tools to all our clients.

Hao noted options are a unique instrument that lets traders manage, price, and hedge the volatility of cryptoasset with a combination of contracts. Options are a derivative that gives traders an opportunity to buy or sell an underlying asset depending on the contract they hold after paying a premium.

To access OKEx’s options trading users will have to go through a know-your-customer (KYC) verification process, and pass a suitability test to show they understand what they’ll be trading.

As CryptoGlobe recently covered the cryptocurrency exchange is also set to soon launch USDT-margined perpetual swap trading, on December 16. The USDT-margined perpetual swap delivers several underlying cryptocurrencies to speculate on including BTC, EOS, ETC, ETH, LTC, BCH, BSV, TRX, and XRP. Traders will be able to use a massive range of leverage, from 0.01-100x.

Derivatives exchange giant CME Group is also looking to launch an options product that’s tied to its bitcoin futures offering. Bakkt, the Intercontinental Exchange’s crypto venture, is set to soon launch options contracts as well. Deribit and LedgerX already offer options trading.

Featured image via Unsplash.