A glimpse at cyclical effects of crypto-market price volatility and hedge fund firms

Bitcoin price extended its recent rallies after it broke-out decisively the resistance zone of $3,675 - $3,750 mark against the US Dollar. Well, we reiterate that this 22nd February, the latest round of BTCG19 CME futures (contract started on December 3rd2018) expires.

BTCUSD price has surpassed $4k mark yesterday to extend bullish streaks and hit 6-weeks highs (refer above chart). The current price spikes above 7-DMAs with bullish crossovers and although we observe buying momentum, the same has been shrinking away ahead of expiry week.

The nature of futures contracts would imply that they need to be settled on a set, predefined date, based on a contract. 

All CME contracts will have to be traded, or settled, before this date. There is generally a fall in the trading volume of futures around expiration dates, that coincides with a rise in volatility and potential short/long squeezing.

As a result, quite a few hedge fund firms are exploiting and deploying a wide range of strategies for Crypto-assets to fetch handsome yields by mitigating the risk factor of the market volatility.

Within the gamut of crypto ecosystem, for sustainable growth and profitability without actually getting affected by the market turbulence, many hedge fund firms in this space are coming up with the innovative entrepreneurial thoughts into the conventional style of capital market capitalizing on apprehensive prospects and to restrain from having to rely on a crypto market rally to generate a handsome ROI.

In a survey, we came across that approximately 180 crypto companies in 47 different countries around the world, quizzing them on four different segments of the crypto economy — storage, mining, payments, and exchanges — for empirical evidence to measure industry development. But what evidence exactly can be used to measure the state of the crypto economy? 

Of several "market growth indicators" surveyed, the number of users and transactions is considered paramount: during the surge of 2017, the number of identity-verified users of crypto services quadrupled and then doubled again as prices fell during the first three quarters of 2018.

The total number of users now totals 139 million, of which around 38% are said to be active. Of these users, the vast majority are individuals, and a minority are business clients comprised mainly of crypto asset hedge funds and online merchants.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 76 levels (which is bullish), while hourly USD spot index was at -99 (bearish) while articulating (at 10:22 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex