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 because investors are fleeing risk-on investments, which include stocks and other assets that are particularly prone to sellouts 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.