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RE: ADSactly Crypto: How Bitcoin Futures Could Affect The Future Of Bitcoin
It is a pretty crazy tool and now that it allows institutions and retail investors to hedge their bets side by side it could prove to be an interesting place to play in for those who don’t like the topsy turbulence BTC price
I do think it was a little too early for these products since there’s still the ease of market manipulation!
I mean as soon as these bakkt contracts came out we saw a big sell of 5000 BTC on Bitmex and the price dropped and others continued to sell driving the price down!
Whose to say that wasn’t someone or a group invested in futures!
The modern investor on YouTube was just mentioning this today...a lot of big research companies have been asked to look at this manipulation/ relationship.
He basically said that there IS a correlation between the future contracts settling and bitcoins sell offs.
The link to his vid is here:
Thanks for the video, i've bookmarked it and will look at it a bit later. It makes total sense to do that from their financial standpoint. What we do see with these large buy and sell orders is higher trading volumes and hashing rate though.
Miners also benefit from the increase in transaction fees from these big orders so it still leaves more money in the Network over time. It might not be great short term but perhaps long term it will