Bitcoin has fallen dramatically this year. The leading crypto is down a steep 57% this year and 70% from its all-time-high of over $65,000 in November 2021.
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Even at these levels, Bitcoin dominates with a market capitalization of $379 billion, according to Coinmarketcap.
That dominance has been trending down. Even before Ethereum’s merge which marked a shift to staking from mining, staking started drawing more investors.
The Ethereum merge, which went live Thursday, has driven ETH’s price down — a trend that was evident when the coin’s futures sold for a lower price than spot prices. The prices of both coins have also plunged ahead of the Fed’s meeting and expected interest-rate hike.
But at the moment, the world of staking belongs to Ethereum. What does that leave Bitcoin?
Nano Bitcoin Futures Now Trading
Bitcoin was the first entrant in the world of digital currencies.
However, after the recent crash and Ethereum merge, it is difficult to see where the coin may be headed. BTC has been in a playoff against ETH and vice versa. So the current move away from Ethereum could push BTC up in the near term.
In June, Bitcoin got a fillip when Coinbase Derivatives Exchange launched Bitcoin futures trading for retail investors.
Investors can trade nano BTC futures listed under the ticker BIT. A nano BTC is valued at a hundredth of a Bitcoin.
The CME Group launched micro Bitcoin and ETH options in March. Ahead of the merge, the group also said it would launch contracts for ETH futures after it saw increased interest in September and December micro ETH options contracts to manage price risk.
According to the Commodities Futures Trading Commission, the crypto derivatives market is currently valued at $3 trillion.
Earlier, Goldman Sachs had started offering BTC futures for institutional investors. But what is different about Coinbase’s offer is that it makes crypto futures available to retail investors. This will likely pump further liquidity into the most liquid crypto there is.
Retail Payments Drive Bitcoin Growth
As the crypto market searches for a bottom, Bitcoin may also find growth from the payments sector.
Crypto payments go back to 2013 when Stripe, a credit card, started processing Bitcoins for payment. PayPal (PYPL), Microsoft (MSFT), Dell (DELL) and Expedia (EXPE) followed.
According to Bloomberg, Bitcoin accounts for the majority of crypto payments, though its share may be coming down due to the rise of altcoins.
The Boston Consulting Group expects global payments in cryptocurrencies to reach $2.9 trillion by 2030.
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