Speculation: Bitcoin crashes when futures go live. The altcoin rubber-band effect means XMR USD price goes higher initially, several days, then follows BTC down.
What's the reasoning behind the idea that BTC futures will go down? I get the rest of it.
You can sell futures without borrowing BTC. If you sell enough, the spot market will follow the futures down as arbitrageurs buy the futures and sell at spot. If you want to accumulate a lot of BTC step 1 is to push the price down as far as possible. And keep pushing until you are full. Indeed you might simultaneously go short on the margin markets, and cover both at your preferred bottom. Futures have been used to suppress hard money pricing for decades.
Futures markets often end up being far bigger and more important than the actual market they are based upon. So this is entirely possible, even likely. I have a hedge fund manager friend who pointed this out and told me that it was what the market (they) had been waiting for to get in.
So this Bitcoin Future is a bad thing ? In what time period we are talking ?
Futures are like margin trading. So shorting or longing Bitcoin. It already exist but not on wall street. Futures should help stabilize price of Bitcoin so we should not see +10% and -10% a day movements. but ofcourse it will not stabilize first day. It will push price up a lot and then, might even take years will be huge crash and after that quiet stable price will be found.
After price will stabilize we will get is Bitcoin that will not attract people with x10 price in a year anymore. 90% people now are attracted only by this reason. New people coming after that in Bitcoin will be interested because of technology.
aha , thx a lot for explaining. so thats not so good for monero as well... i hope it takes years for that to happen. i really want to see XMR go 1000 usd
, or that can only be in my wildest dreams? )
