Malta-based cryptocurrency exchange, Binance has made sure to adopt every new development that comes into the industry. Recently, the platform rolled out Binance Futures and despite being fairly new, the platform has seen significant growth in the same. The Binance Futures’ trading volume hit a high of $1.14 billion with 165k BTC traded on its platform.
Ever since the launch of Binance Futures, the daily trading volume has mostly been below $750 million and even plummeted to a low of $300 million last week. However, the daily trading volume recovered as it surged to $820 million on 15 October.
The crypto carnage that left the market bleeding towards the end of September had pushed the price of Bitcoin below $10,000. However, the road to recovery for Bitcoin left the entire crypto community in a puzzle as the king coin rallied from $7,700 to $8,400 and jumped past the 10k mark.
At the time of writing, the king coin had registered a 25.5% increase over the past 24 hours while it was trading at $9,428.
With the intention of garner increased participation Binance Futures had previously raised the leverage to 125x along with the launch of Bitcoin [BTC]/Tether [USDT] contracts. This move was certainly beneficial to the exchange as it surpassed BitMEX’s Futures leverage positions.
As per Binance, in order to maintain risks that surround traders during high leverage, the BTC Futures contract ensures a “built-in hedging tool.” The platform is also presenting an insurance fund in order to minimize the possibilities of auto-deleverage.
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”