Interest per week
Interest per year
Bitcoin futures were first introduced in December 2017 on crypto exchanges CME and CBOE. Back then, many expected the introduction of those assets to let the Bitcoin price skyrocket.
Later, other trading platforms started adding Bitcoin futures as well. The BitMEX exchange has been a major player in this market. In September, Bitcoin futures were launched by Bakkt and Binance, however, the former did not show a good start.
Later on, things got better there and about a week ago, Bakkt traded almost $50 mln in a single day on BTC futures.
BitMEX’s XBTZ19 contracts about to expire
Now, on December 27, Bitcoin futures for this year on BitMEX are to expire and a prominent cryptocurrency analyst Jacob Canfield warns the community of extra volatility of the Bitcoin price that may occur over the liquidation of futures on BitMEX.
Bitcoin futures on CME expire on December 27 this year too.
‘Futures are no threat to Bitcoin’
Another well-known crypto analyst on Twitter, PlanB, says that he does not see any particular threat from futures contracts to the price of the flagship cryptocurrency.
Even if central banks start future selling large BTC amounts, he specifies, the future prices will be driven below spot, but spot markets will not follow all the way. The key factor here is that the BTC supply is inelastic unlike that of gold.
Bitcoin hash rate slides from its recent peak
A crypto trader and analyst Bitcoin Jack has shared a chart showing that the Bitcoin hash rate has returned to the range low after reaching a high of 111.86 EH/s, which was reported by U.Today earlier.
In the comment thread, the analyst explains how Bitcoin hash rate can impact the BTC price. He writes:
“Increased pressure on miners by lower prices hypothetically increases the ratio at which they sell their mined Bitcoins.”
What are your thoughts on the impact the futures expiring on BitMEX can have on the BTC price? Share them in the comments below!