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RE: ADSactly Crypto: How Bitcoin Futures Could Affect The Future Of Bitcoin
It sounds like they are specialised options on the currency market, except with maybe crazy leverage! Thank you I enjoyed learning more about these new bitcoin futures contracts.
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
If big whales who are already in the bitcoin mkt buy bitcoin future contract, they can possibly control the mkt price for double winning.
That's exactly what I think is happening now with the introduction of Bakkt. They already secured a position in BTC with a reasonable stake, bought in futures contracts at let's say 10k for end of this month
Sold their Bitcoin holdings and as the downward trend continues as other investors want to get out, they know sell their futures at the expiration date and make a profit. Then they can use this to buy back BTC and continue the cycle