[2018-06-22]Bitcoin Futures Contracts could be Hurting Bitcoin's Price

veleten

legendary

Activity: 2016

Merit: 1107

Quote from: Sidtamfia on June 25, 2018, 05:14:03 AM

Quote from: IrinaKaizer on June 24, 2018, 03:38:49 AM

this has already been shown by practice. Although there is no certainty that this is because of this began price correction. Most likely simple have been greatly exaggerated the popularity of the cryptocurrency. Overestimated her, that's all. Now we will go to those prices that are really real.

The future could limit the big rise of the bitcoin. so it could be good for the long term.

how could it be good for the long term?
if the price is low and there is no potential to grow,there will be less interest and less adoption
many have learned about cryptocurrencies due to the price rise,there were no assets even close to the profits bitcoin has shown
now you are saying that if the price drops to the 2016 levels and is "stable" at,say,600$ per bitcoin this would be benefical?

Sidtamfia

newbie

Activity: 65

Merit: 0

Quote from: IrinaKaizer on June 24, 2018, 03:38:49 AM

this has already been shown by practice. Although there is no certainty that this is because of this began price correction. Most likely simple have been greatly exaggerated the popularity of the cryptocurrency. Overestimated her, that's all. Now we will go to those prices that are really real.

The future could limit the big rise of the bitcoin. so it could be good for the long term.

1Referee

legendary

Activity: 2170

Merit: 1427

Quote from: BitHodler on June 24, 2018, 07:48:44 PM

How do these dudes even cope with the manipulation? Whales could eventually empty their entire reserve of coins.

There is only one way for BitMex to outclass whales, which is to have BitMex bust them out of their positions by manipulating the market themselves. You can't win from whales if they have the ability to move the price to any level. BitMex has no other option than to play faul game here. They either eat, or get eaten. I'm certain they prefer to eat.

BitMex is like a casino, but one where luck can be replaced with near perfect winning odds if you're a market mover. No way they could ever last this long if they didn't cheat. It's a market lacking severe regulations, and it's near impossible to prove for regulators that BitMex is busting people out of their positions. With CME there at least are strict regulations involved and the SEC is constantly watching, manipulators wouldn't dare to pull something off.

gentlemand

legendary

Activity: 2590

Merit: 3015

Welt Am Draht

Quote from: aso118 on June 24, 2018, 02:44:23 PM

It would be very tough to isolate the launch of Bitcoin futures from the rest of the other factors impacting Bitcoin's price. Even if volumes were low, the launch of Bitcoin futures offers an opportunity for people to short Bitcoin. And even that threat could cause Bitcoin's price to fall as people might decide to sell.

Shorting's been around for years as have futures via OKcoin. They were available via places with a direct stake in the Bitcoin market which is why I don't get why people are having willies about this. The only reason I can think of is because they somehow believe it's more authoritative when in reality it's far less relevant than before.

This is what I'm failing to get.

BitHodler

legendary

Activity: 1526

Merit: 1179

Quote from: aso118 on June 24, 2018, 02:44:23 PM

Even if volumes were low, the launch of Bitcoin futures offers an opportunity for people to short Bitcoin. And even that threat could cause Bitcoin's price to fall as people might decide to sell.

BitMEX offers way better tools to short Bitcoin than anything else, but people somehow continue to ignore its role in this market. BitMEX's volume hovers around $3.6 billion for today.

CME usually hovers around $75 million, where CBOE usually hovers around $40 million. In my opinion it's clear that the futures are distracting the attention away from the underlying problem, which is BitMEX.

How do these dudes even cope with the manipulation? Whales could eventually empty their entire reserve of coins. Very interesting to look further into. It won't take long before regulators dig in.

aso118

legendary

Activity: 1918

Merit: 1012

★Nitrogensports.eu★

Quote from: gentlemand on June 24, 2018, 12:44:10 PM

I'd love to read a proper analysis of the effects of futures so far for the layman - a thicko like me. I've yet to feel like anyone has informed me.

Everyone saying 'the launch of futures coincided with the fall' kinda forgets to remember the humongous bubble at the same time. Futures volumes started off microscopic so no one was making bank off them by crashing the bitcoin market itself.

It could've been a giant case of selling the news or the aligning of multiple unaligned factors. And so far the price falls and percentages are following similar trajectories to previous ones.

It would be very tough to isolate the launch of Bitcoin futures from the rest of the other factors impacting Bitcoin's price. Even if volumes were low, the launch of Bitcoin futures offers an opportunity for people to short Bitcoin. And even that threat could cause Bitcoin's price to fall as people might decide to sell.

richardsNY

legendary

Activity: 1232

Merit: 1091

Quote from: sindikat on June 24, 2018, 12:04:01 PM

It seems to me that bitcoin was attractive only until it was really decentralized. Now there are many people who want to regulate this market. New rules are constantly being introduced. All this led to the fact that bitcoin began to lose popularity. This price decline was predictable and expected.

Bitcoin is and will always remain decentralized. It's only the ecosystem around Bitcoin that's subject to centralization, which is normal considering that this is the only part where governments can show their teeth. You, like the majority of the profit chasers here, are too focused on the price. It's not the right mentality with how it distracts you from what really matters. On top of that, people aren't forced to make use of centralized services -- there are enough viable alternatives allowing you to bypass all this regulatory nonsense. It's just a matter of logical thinking....

gentlemand

legendary

Activity: 2590

Merit: 3015

Welt Am Draht

I'd love to read a proper analysis of the effects of futures so far for the layman - a thicko like me. I've yet to feel like anyone has informed me.

Everyone saying 'the launch of futures coincided with the fall' kinda forgets to remember the humongous bubble at the same time. Futures volumes started off microscopic so no one was making bank off them by crashing the bitcoin market itself.

It could've been a giant case of selling the news or the aligning of multiple unaligned factors. And so far the price falls and percentages are following similar trajectories to previous ones.

sindikat

full member

Activity: 364

Merit: 106

It seems to me that bitcoin was attractive only until it was really decentralized. Now there are many people who want to regulate this market. New rules are constantly being introduced. All this led to the fact that bitcoin began to lose popularity. This price decline was predictable and expected.

Rahar02

hero member

Activity: 910

Merit: 523

Many factors that can affect bitcoin price, bitcoin futures is one of them as investors can slightly manipulate the market and trigger panic sell. CBOE showed that it saw open interest during the June's settlement 1,412 contracts which is worth 1,412 bitcoin which will make it difficult for the bitcoin market to be highly influenced by that existing number of contracts.
That's not entirely true, contract holders may just buy 1,412 contracts but they can buy and hold bitcoin as much as they want, then massively sell out ahead of the expiration date.
or maybe we just exaggerate the value of bitcoin, whether it's the real value of bitcoin or just temporarily settlement, waiting for another chance to rise. Only time will tell.

Lampaster

sr. member

Activity: 406

Merit: 255

Quote from: IrinaKaizer on June 24, 2018, 03:38:49 AM

this has already been shown by practice. Although there is no certainty that this is because of this began price correction. Most likely simple have been greatly exaggerated the popularity of the cryptocurrency. Overestimated her, that's all. Now we will go to those prices that are really real.

It seems to me that the appearance of futures contracts in the bitcoin market was the main reason for the price decline. So it was always with all the goods that used this form of trade. It seems to me that the average speculative capital left bitcoin and gave way to large traders who make a profit not on volatility but on sales volumes.

IrinaKaizer

full member

Activity: 184

Merit: 100

Crypto Lady

this has already been shown by practice. Although there is no certainty that this is because of this began price correction. Most likely simple have been greatly exaggerated the popularity of the cryptocurrency. Overestimated her, that's all. Now we will go to those prices that are really real.

Vladdirescu87

sr. member

Activity: 966

Merit: 264

A big financial analyst famously known for his optimistic position on bitcoin has floated the contingency that bitcoin futures contracts could be highly damaging the cryptocurrency's price.

Tom Lee, the co-founder of the research firm Fundstrat, revealed that bitcoin futures contracts could be responsible for bitcoin's recent "gut-wrenching" price diminutions.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/bitcoin-futures-contracts-could-be-hurting-bitcoin-price/

Topic: [2018-06-22]Bitcoin Futures Contracts could be Hurting Bitcoin's Price (Read 210 times)