bitcoin futures trading
Whats your thoughts on this? Will it effect bitcoin?
Although, it is already happening through CME (Chicago Mercantile Exchange), where you can trade bitcoin futures, I find the idea exciting (gives BTC the potential of being a more mainstream commodity/investment instrument). As for impact on bitcoin, futures do alter investors’ perception of expected prices, and people are likely to act (react to be precise) to the (aggregate) expectation reflected in the futures. For instance, the bitcoin futures were net short (expecting prices to decline) and rightfully so as BTC dunked to $7400 last week. However, they remained steady on their perception on the week’s close yet the BTC price surged to over $10,000 on the weekend. Today and possibly in the coming days, we can actually see whether the perception holds and the BTC normalizes to around $8000 or further rises as investors are prompted to reevaluate their positions.
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