Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Cryptocurrency Price Speculations => Topic started by: Goodcat49 on June 22, 2018, 02:24:20 PM
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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.
Tom noted that there was a lot of visible volatility in bitcoin's price all over the expiration date of CME Group plus Cboe futures contracts.
In December 2017 both Cboe and CME Group carried out a bitcoin futures products launch and at that time, bitcoin was highly and steadily trading close to $20,000. Since then, bitcoin has greatly fallen. On Monday, bitcoin was down 0.35% against the dollar to $6,438.56 a coin.
Tom indicated that traders who are long bitcoin and short futures could trade bitcoin at any time of price auction to make the price to reduce and leave their futures contracts with high profit.
Chris Concannon, president and chief operating officer at Cboe Global Markets Inc noted that while they are excited about their bitcoin futures that were recently launched, the sentiment that they have materially affected the bitcoin price exaggerates their influence and neglects other extremely important facts.
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/
(https://coinidol.com/upload/resize_cache/iblock/769/900_900_1/76970a6ded0c5a0f3741c469f9b3deae.jpg)
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There's tremendous amounts of manipulation in BTC the past two months, and lots of it is in margin trading. So I think that at least has something partially to do with it.