Bitcoin futures forecast: will they crash bitcoin?in Cryptocurrency, News
Everyone expects weekend Bitcoin futures funds adoption but no one actually knows what will happen after the event. The announcement by CME a few weeks ago helped push the price of Bitcoin above $7,000. Meanwhile, futures allow for people to have protection in a volatile market like Bitcoin. If they enter at a certain price, and that price drops, they have the chance to pull their investment out at the same price they entered in. Thus, it makes sense for a big money spender to try and manipulate the market down, pull his investment out at the same price, and re-enter, buying Bitcoin at a cheaper rate. So, what is the future of the futures? Tiffany Galvin, the spokeswoman for Goldman, wrote:
“Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the Bitcoin futures contracts as part of our standard due diligence process.”The growth of a bitcoin futures market positions it even more as a commodity than a currency (in the US, the Commodity Futures Trading Commission regulates futures markets). And even more as an investment asset than a technology that has the potential to change the plumbing of finance. So, while the market appears to be greeting the launch of not one but two bitcoin futures exchanges in the next two weeks (with two more potentially important ones on the near horizon) with ebullience, we really should be regarding this development as the end of the beginning. And the beginning of a new path. What is your opinion related to the futures? Share it in the comments below.
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