Bitcoin Futures Launched Last Night Without A Hitch
Well, almost without a hitch.
The CBOE website was down briefly immediately after the Bitcoin Futures were launched due to heavy site traffic, but that was quickly rectified.
Bitcoin Futures launched, and website immediately crashes.
Other than that, things have mostly gone on without a hitch.
There were 2 trading stoppages due to price increases but that was part of the limit up standards that are currently set in place any time the currency gets too volatile.
Just over 3,000 contracts have traded since the launch last night.
That might sound like a lot, but it only represented about $50 million worth of USD.
Which is not terrible, but compared to something like gold, which can trade $50 billion worth of USD in a single session, it's not a lot of money.
Which is a major reason that many of the bitcoin bulls are so bullish still.
In the grand scheme of things the bitcoin market is not very large, and the cryptocurrency market as a whole is not all that large.
In fact, here's some perspective on the Bitcoin market:
Bitcoin represents about a $300 billion market.
Gold is close to $7 trillion.
U.S. Stock market is $25 trillion
U.S. Bond market is $38 trillion.
What is even more compelling is that Bitcoin is border-less. Meaning money can come into it from anywhere. Which means it's overall reach should be that much greater.
It is no wonder that the Winklevoss twins recently stated that they have no idea ultimately how high bitcoin will go, but they are confident that it will be a multi-trillion dollar asset at some point in the future.
Looking at the above it is not that much of a stretch to say so...
Some thoughts on the CBOE Futures launch:
So far, not much volatility has been seen in the price of bitcoin since the launch, but that doesn't mean there won't be.
The next big product to launch is on the 18th (1 week from today) when the CME launches their Futures and Options products.
Then the Nasdaq will follow suit, and launch their Futures products early in 2018.
One caveat to keep in mind is that some of the brokers allowing trading of the CBOE Bitcoin Futures products are not allowing shorting at this time. For example Interactive Brokers is not allowing any short positions to be taken. Keeping that in mind, there is still likely limited ability to short by those that want to.
Taking all that into account though, I would say the launch of the CBOE Bitcoin Futures products was a resounding success and am very happy with the results thus far.
Looking forward to more launches and more coins eventually being included in products like these.
Stay informed my friends.
Sources:
http://bitcoinetc.io/cboe-launches-bitcoin-futures-site-immediately-crashes
https://www.cnbc.com/2017/12/11/bitcoin-futures-up-and-running-but-trading-is-light.html
Image Sources:
https://finance.yahoo.com/news/latest-bitcoin-futures-rise-trading-000918318.html
http://bitcoinetc.io/cboe-launches-bitcoin-futures-site-immediately-crashes
https://www.hollywoodreporter.com/live-feed/silicon-valley-winklevoss-twins-cameo-784837
Follow me: @jrcornel
Hey jrcornel,
Thanks for the great content
So far, the futures don't seem to be affecting Bitcoin too much
Not yet. The volume of contracts on the this beggining Will probably be low, but Will definitely increase.
Bitcoin will reach $1 Trillion mark more sooner than expected.
You and the Winklevoss twins would be in agreement!
2018 will be even more exciting as more and more big players come in :) and super fun to see Winklevoss twins getting in, is it just me but it kinda feels like Part 2 on Social Network movie, where Winklevoss get their payback :)
btw, recently did the post about top cryptoexperts to follow and you, @jrcornel are one of the featured people there ;) - 40 Best Blockchain Influencers & Cryptocurrency Experts To Follow in 2018 (On SteemIt Too) - http://bit.ly/2AdNCn0
Why aren't traders being given the option to short the price?
It's quite common for a brand new issue to not have shorting for a few days after it begins trading. As for the reason brokers do it this way-- it's a good question.
Interesting! I don't understand futures beyond their basic purposes - but I'm wondering here if, although some said that on Sunday the market had priced in fears regarding bearish futures contracts being taken out and the spot price of Bitcoin then being shorted by the holders of those contracts, if the real big Bitcoin shorts are still waiting in the shadows 'till they can go short on the futures?
Well remember, SOMEONE is effectively shorting the futures NOW, this is bc when they were created it's unlikely the futures exchange(s) went out and purchased enough bitcoin to sell to buyers. So the big exchanges might actually be net-shorting bitcoin just to sell the contracts. Also, big banks may have recieved authorization from financial regulatory bodies to "naked" short bitcoin futures. Regulating bodies have their own best interest at hearts (contrary to their official-sounding names) and might be working in concert to suppress bitcoin prices for the near future. This was all documented by some gold-bugs back in 2011 when gold and silver were going "nuts".
you can search the internets for more info on that.
Main point: with futures out there now, we all have to be careful about thinking the fast 100% up moves will last much longer, at least in BTC anyway. Good time to be a little more "conservative" with bitcoin trading/investing.
I guess It is because they need some long orders to match the shorts. The logic dictates that someone need to have a buy contract in order to an sell contract to bem avaiable.
I expected a sharp price increase to may be upto 18k.....but may be that will happen next week when it might shoot to 20k before end of year..!!!
Those are the numbers I am thinking as well.
Heard a report that said Interactive Brokers was around 50% of volume.
If they don't allow shorting, then apparently not a lot of shorting has begun (yet).
Read the same thing.
In bitcoin everything will happen. But it easy to say it will go so far....
“No, there is NO way to properly short the bitcoin “bubble”. Any strategy that doesn’t entail options is nonergodic (subjected to blow up). Just as one couldn’t rule out 5K, then 10K, one can’t rule out 100K.”
may i ask for your help?
Actually its funny, BTC deserves much much more!
A small 50 million..... shame for the brokers!
Or do they realy have no idea....
Futures are impacting BTC. 15% gain at least in BTC pricing as the futures launch.
I noticed that as well. $18k? Or can it make it to $20k?