Bitcoin News

Investors abandon Bitcoin to buy Ethereum

TL;DR Breakdown

Bitcoin futures lose popularity with the token’s downtrend.
Ethereum futures contracts increase the subsidy to over 1 percent.

The BTC futures market has been suffering from the displacement of its potential investors in recent weeks. This occurs because the most popular and valuable cryptocurrency globally, Bitcoin, has been on a bearish streak for more than a week.

As Bitcoin plummets in price, token futures enthusiasts migrate to alternatives, such as Ethereum. According to crypto analysts, this change of investments in ETH futures could add value to the token.

BTC futures could be affected by new adoptions

Since September began, BTC futures have been trading well below the mark. While Bitcoin was trading above $45,000, the futures market did not exceed the $40,000 range.

According to crypto researchers, this would be a setback for BTC trading as this reflects how low the demand is among business promoters who often use these contracts to make a profit on crypto. It must be considered that BTC futures trade above their official value. If the token is worth $42,000, the BTC future should exceed that value. However, everything is in reverse, discrediting the Bitcoin futures adoption.

As investors turn away from BTC, the Ethereum token is gaining priority among contracts. The average subsidy among ETH futures has surpassed 1 percent since the beginning of September.

How does Ethereum futures trading influence the crypto market?

As the demand for Ethereum futures increased, this helped the token not fall apart as easily as the other cryptocurrencies did. While the BTC price dropped to over 10 percent, Ether only lost 3 percent of its value. This change between futures adoptions contracts in cryptocurrencies greatly influences the value of the token.

However, both cryptocurrencies did not withstand strong China and the United States government regulations. Bitcoin has hovered above $43,000 with a small rise of 1.14 percent in value. But Ethereum is trading above $3,100 with a peak of 2.04 percent in the last 24 hours.

Ethereum futures contracts like BTC offer the same financial solutions; only it does not have strong volatility. Despite these new adoptions benefitting ETH, Bitcoin contracts continue to dominate among financial institutions. The reputation and trust you have gained from trading BTC futures cannot be compared to what you have built up from trading Ether.

Bitcoin is recovering from this slump, and with it comes news among CME contracts. When the cryptocurrency reaches new all-time highs in its value, all those companies that have moved away today will change how the token is viewed.

This post was last modified on September 23, 2021 7:51 pm

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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