Expert Warns: The Secret Weapon That Will Carry Bitcoin to $10 Trillion Is Revealed!

Market analyst James Van Straten stated that options and derivatives could boost Bitcoin’s market capitalization to at least $10 trillion.

Derivatives, financial instruments like options contracts that give investors the right, but not the obligation, to buy or sell an asset at a predetermined price, are what market analyst James Van Straten believes will propel Bitcoin’s market capitalization to at least $10 trillion.

Van Straten said that options and other derivative products are attracting institutional investors and mitigating the high price volatility, which is the most prominent characteristic of digital assets.

He pointed to the open interest in BTC futures on the Chicago Mercantile Exchange (CME), the world’s largest derivatives market, as evidence of a shift. Van Straten wrote:

“CME options open interest is at an all-time high, partially driven by systematic strategies of selling price volatility, such as cash-secured put options. This indicates a more mature market structure with deeper derivatives liquidity around Bitcoin.”

Van Straten added that falling price volatility works two ways, meaning the sharp drops often seen in crypto markets will decrease, as will the meteoric rises investors are accustomed to.

Market analysts continue to debate the impact of financial derivatives and investment vehicles on the Bitcoin market cycle and the broader crypto market. Some say all signs point to market maturation, while others argue that the main determining factor is investor psychology.

Related: Fed’s “dovish” move will make Bitcoin price skyrocket — Mike Novogratz

Has the Four-Year Market Cycle Ended?

Analysts are divided on the impact of institutional investors, investment vehicles, and financial derivatives on the crypto markets.

Seamus Rocca, CEO of financial services company Xapo Bank, told Cointelegraph that Bitcoin’s four-year market cycle has not ended and that markets will continue to be influenced by news cycles, community sentiment, and investor psychology.

“Too many people are saying, ‘Now that the institutions are here, the cyclical nature of Bitcoin is over.’ I’m not so sure,” said Rocca.

Matthew Kratter, a Bitcoin advocate and market analyst, argued that human psychology is the real force driving markets, and that institutional investors are just as irrational as individual participants.

Kratter added: “The last Bitcoin bear market from 2021 to 2022 was largely caused by institutional investors doing really stupid things at places like Grayscale, Genesis, Three Arrows Capital, and FTX.”

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