The crypto currency market had a rough year in 2022 due to several assets falling from their all-time highs in 2021. People's faith in digital assets decreased due to the negative trend, which led to a panicked selling off of tokens. However, some investors saw the negative trend as a chance to build up their digital asset holdings to profit later.
Terry Duffy, the CEO of CME, recently commented (1) on the good business flow for his organization despite the depressing situation of the crypto currency market. He emphasized the implications of the ongoing increases in interest rates that the Federal Reserve in the United States has implemented.
Duffy disclosed that his company witnessed an increase in trading interest in 2022 despite the push to sell the company's shares.
Duffy shared his enthusiasm over the recent upward price trend that the market has seen for bitcoin. According to him, increased interest from several investors worldwide is being driven by the extreme volatility of the principal crypto currency token.
In addition, the chief executive officer detailed the unpleasant happenings and problems in the crypto currency business over the last three months of 2022. He pointed out that the abrupt failure of FTX Exchange, a renowned crypto currency exchange, was a devastating blow to the sector as a whole.
The incidents resulted in losses for investors of billions of dollars and generated a feedback loop that crippled other companies tied to crypto currencies.
But despite all of the mayhem, according to Duffy, they saw an excellent performance. According to him, the CME's derivatives marketplace attracted more investors during November and December of the previous year.
Duffy observed that the future would be profitable, given the growing number of traders that use the CME group. Notably, CME Group Inc. released Ethereum futures on its platform, and the company plans to add Euro-dominated futures shortly.
The Current State of the Crypto Market
Despite the problems, the Chief Executive Officer believes there is still room for expansion and growth in crypto currency. Additionally, he added that the crypto currency sector would see increased public adoption and traction with the implementation of jurisdictional restrictions.
He stated that one of the most effective trade methods is to use a regulated exchange such as CME. And this is one of the reasons for the company's growth despite the difficulties in crypto currency.
In addition, Duffy discussed the impact of the recent steps taken by the Federal Reserve. He thought it was commendable that the Fed was attempting to reduce inflation through its monetary policies.
In the fight against inflation throughout the previous year, the Federal Reserve continued to take a hawkish posture in its control measures. Despite this, many continued to speculate about the next probable move that may be made.
Meanwhile, Bitcoin was trading at $21,709 at the time of the writing, this represents a 0.4% rise on daily basis
Ethereum was trading at $1520, up 0.5% on daily charts.