CME Group CEO Terry Duffy stays optimistic about the way forward for the cryptocurrency market regardless of the devasting sell-off that occurred in 2022.
In a latest interview with CNBC, Duffy mentioned that the Chicago-based buying and selling big really noticed an uptick in buying and selling curiosity:
“It is actually been attention-grabbing what has been happening with Bitcoin,” Duffy mentioned. “We noticed what occurred on the finish of the yr with a number of the points happening within the business. The entire crypto business suffered after which we noticed an uptick in our open curiosity in November-December, and it is persevering with on right here.”
Regardless of the challenges going through the crypto market, Duffy believes that the regulated market is gaining traction. “If we’ll commerce that factor, we’ll commerce it on a regulated alternate like CME. So we have really seen an uptick in our crypto merchandise. So, we’re fairly happy by that,” he mentioned.
Duffy additionally spoke concerning the influence of the Federal Reserve’s fee hikes on CME Group. Notably, the CEO is satisfied that the latest uncertainty surrounding the Fed’s future financial coverage choices is nice for enterprise. He admits that it’s troublesome to foretell what’s going to occur within the coming months.
“Whenever you have a look at the place the market is pointing to, you are trying on the subsequent Fed assembly. You’ve got bought a 90% likelihood that there is going to be one other quarter % hike after which you may have the assembly after that in Could with a 70% probability of 1 / 4 hike,” Duffy mentioned. “The Fed Fund Futures is pricing in probably by year-end possibly a pivot on the draw back.”
Despite the market’s prediction of a possible fee minimize by the top of the yr, Duffy believes that it’s too early to make any conclusions. “I feel that is the great thing about the market proper,” he mentioned.
Final September, CME Group launched an providing with Ether futures. Not too long ago, it additionally introduced the introduction of euro-dominated futures.