Global markets are currently suffering – including Bitcoin. Even traditional safe havens like gold have experienced some downward pressure in the past week.
This intense sell-off came about as investors flee risk-on investments, which include stocks and other assets that are particularly prone to sell-offs during the economic turmoil.
Bitcoin’s close correlation with global markets over the past week seemed to confirm that investors initially view Bitcoin as a risky investment rather than a safe haven.For this reason, the volume of cryptocurrency CME futures is now collapsing, indicating a massive deterioration in investor confidence.
Bitcoin CME futures volume “collapses” because BTC wants to overcome key resistance
At the time of writing, Bitcoin is trading at $ 8,830, which is a slight drop from the daily highs of $ 8,900. The decided rejection that BTC experienced at $ 9,000 seems a bearish sign for buyers as it points to a fundamental weakness.
This price action has also brought the volume of Bitcoin’s CME futures to collapse, signaling that investors lack clarity about where BTC might move next, as its medium-term trend is likely to align with that of global markets.
Alex Krúger, a prominent cryptocurrency economist, recently tweeted about this phenomenon, saying that the slump in volume was associated with the global crisis.