Bitcoin Prepares for Futures Down 2k!
Bitcoin has always been a rollercoaster ride and this weekend has been no different. Bitcoin prices declined massively this weekend probably as a result of traders looking to lock in profits before XBT futures come online.
Bitcoin's price retreated sharply on Sunday where the king of all cryptos saw a low of $13,474. BTC/USD then made a move to consolidate at $13,662 amounting to a loss of $1,931, or 12.4%.
This cliff drop resulted in tens of billions of dollars off bitcoin’s market cap. BTC's last valuation put it at roughly $227 billion.
The declines followed another streak of record-setting gains for global cryptos that was largely driven by bitcoin. The world’s most expensive cryptocurrency has been riding high on news that CBOE will launch its bitcoin futures contract (XBT) a full eight days before rival CME Group.
News of forks and massive integrations of broader financial markets are commonly cause for loading BTC and often result in dramatic increases in price.
XBT is a cash-settled futures contract based on the Winklevoss brothers’ Gemini auctions price. The contract will begin trading 6:00 p.m. ET Sunday on the CBOE Futures Exchange.
I read somewhere recently that one of the Winklevoss brothers just recently became a Bitcoin billionaire. Not surprising considering their fondness for the original crypto asset.
There’s no way to know for sure how Wall Street will treat the new derivatives contract. On Friday, the Futures Industry Association (FIA) issued a stern statement to the Commodity Futures Trading Commission (CFTC) that its members were concerned about the derivatives contract. In an open letter, the lobby group said XBT “did not allow for proper public transparency and input.”
This will make BTC a lot more difficult to predict as people line up on both sides to essentially bet on which direction the price valuation will go. You better believe that this will influence traders as they look to buy or sell Bitcoin.
Overall we are seeing a very interesting merger between traditional financial markets and crypto markets. There's no telling where we go for here but it is sure to be a bumpy ride as it has done up until this point in crypto.
What do you guys expect will happen to the price of BTC when these futures come online? Should we expect a lot more volatility or will this offer some stabilization of the broader market in general?
Please leave thoughts and comments below.
Source:
Bitcoin Plunges $2,000 on Eve of Futures Contract - Hacked
Image Source:
Hacked
BTC futures will create news media.
That will create more awareness re BTC => more new money will arrive.
My prediction => next stop BTC $50,000 (maybe 100K in same run)
Back to the crystal ball :-)
Nice work Fred! I'd say you'd be right here but I lost my crystal balls on altcoins the other day...
Many people may expect that the availability of Bitcoin futures will boost the money that enters bitcoin. But who each dollar invested in BTC futures is a dollar not invested in Bitcoin itself. So the futures market DIVERTS money from Bitcoin.
As far as I know all the futures are cash settled and therefore I believe it won´t affect the Bitcoin trading too much. The Volatility will stay high anyways but the current sell off is rather based on a healthy correction IMO
That would be fine by me! Thanks for dropping by SB, always a pleasure to read your comments.
The pleasure is always mine my friend :)
People who like to think they are traders because they were lucky enough flipping different cryptos will start to have some bad time now that the big money is starting to come in. Just a prediction.
I feel a bit sorry for those people. They will have no idea why prices fluctuate the way they will. They'll loose a ton of money. Most of them have no idea of fundamental analysis. They follow what some guy on YouTube or someone on some Telegram group tells them when they should buy or sell.
The crypto market is still small and so fragmented into 1000s of coins that now that the big institutional money is coming in it will be so easy to manipulate prices. Even more than until now.
Hard times for wannabe crypto-traders ahead.
Sir please who won the Technology competition you posted last week?
I think tomorrow bitcoin might hit over 20K even 25 the correct to 20 and to the 50K road untill summer then 100K by same time next year
Before that it may drop very low. Remember last time when it went up to > $1000 then back to $200
Big storm in bitcoin is comming
there will be a hike in january again... i dont think there is any profit to sell bitcoin who have them...
I do think the price of Bitcoin will always gonna be above 10000$ now and in future, till it vanished.
i think after bitcoin reaches its full potential..... people will start shifting to low cap alt coins and i think they will go fr currencies like dash zcash other than developer platform currencies making these currencies gud fr long term...so better shift b4 they go up
Agreed! Altcoins will have their day... I've also heard that privacy coins may be a good bet as well!
@originalworks
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