I don't think futures necessarily "suppress" prices; I think it just makes the markets a lot more sort of "dramatic" than it should be.
And no, I don't think ETF will be "the nail in the coffin". Though it will definitely help A LOT with market liquidity. It will be significantly harder to move the price to either direction if enough money comes in.
Topic: Bitcoin price suppression - futures volume vs spot volume - page 2. (Read 207 times)
Prior to 2017, there was no futures market for Bitcoin and all trades were 100% spot.
Now, futures volume for Bitcoin is up to 10x the spot volume.
The silver market is also notorious for having a large futures/paper market compared to physical and is likely one of the reasons why silver prices are able to be suppressed.
Is Bitcoin going to suffer the same fate as silver, with prices being suppressed in the coming years? Will Bitcoin-futures-backed-ETFs be the nail in the coffin?
Thoughts? Keen to hear any arguments against this view.
Now, futures volume for Bitcoin is up to 10x the spot volume.
The silver market is also notorious for having a large futures/paper market compared to physical and is likely one of the reasons why silver prices are able to be suppressed.
Is Bitcoin going to suffer the same fate as silver, with prices being suppressed in the coming years? Will Bitcoin-futures-backed-ETFs be the nail in the coffin?
Thoughts? Keen to hear any arguments against this view.
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