Bitcoin is becoming a popular asset among traders globally and this is becoming apparent as it is ranking among top traded assets. In May, Bitcoin ranked as the second most traded asset on the CME market by volume and open interest ratio, according to reports.
Bitcoin Future had a volume/open interest ratio of 303%, second only to Dow Future which has 333%. Gold which has been the top competitor with Bitcoin as a store of value only had 91% while most major fiat currencies ranked less than that in the market. This is just one of several indicators that Bitcoin is becoming more accepted globally.
As at early May, Bitcoin was the best-performing asset globally, beating stocks and oil with a very wide margin. It has recorded a rise of 67% as at that time when global markets were in a tough time. This has been a pattern in past years according to analysts so this year’s performance is not unusual.
According to Fundstrat’s head of research Tom Lee, the performance of Bitcoin also shows that the asset is not correlated with stocks and other tradable assets. Stocks suffered due to several reasons such as the trade war between China and the U.S which has gone to an advanced stage now, but it has become obvious that these factors do not affect the performance of Bitcoin because it is not subject to political control.
This has been the power of cryptocurrency that makes it widely accepted and the acceptance is growing every day. Bitcoin isn’t the only crypto asset that is becoming popular, altcoins have also become quite accepted in the mainstream sectors for the services they are able to render. XRP, for instance, is the world’s leading token for payments on the Ripple blockchain.
Ripple is on its way to replace many existing payment platforms that have existed for decades by offering a faster, more efficient and incredibly cheap way of transferring wealth around the world.
While this is going on, Bitcoin is working on becoming the preferred store of value to replace gold which has been there for centuries. If this level of progress is maintained, it won’t be long before Bitcoin becomes the number one store of value globally and cryptocurrency, in general, will become more accepted.