The price of Bitcoin is apparently not related to the Bitcoin futures trading, according to a new study that was published by Cindicator. The actual report makes today’s headlines on our DC Forecasts Bitcoin news site – and focuses on the price of Bitcoin and all of the factors affecting it.
With a title Bitcoin Futures: Market Evolution, the report also studied the volume of Bitcoin on futures and spotted cryptocurrency exchanges to get an idea about the liquidity and development of the holistic trading market.
Some of the findings included the presence of institutional investors in the future markets as well as their past positions on the futures, comparing them to the Bitcoin price movements before the future expired.
Basically, the report centers around the theory that future markets, and their comparatively lower volume than the spot market, are right now insufficient catalysts when it comes to predicting Bitcoin spot prices. The researchers at Cindicator also noted:
“This is partly because of arbitrageurs trying to gain from differences between futures and spot prices that can be produced by lower liquidity and/or differing demand-supply dynamics of futures and spot investors in the short term,”
The report also pointed out to the Bitcoin price pattern before the first future contract expiry, noting:
“Probably because it was the first expiry, the CBOE futures experienced a spike in intraday hourly return volatilities on expiry,”
As the report found, the popular correlation of Bitcoin’s price and Bitcoin futures could not sustain the mainstream fundamental factors that belittled futures market relevance in defining the Bitcoin price movements.
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“Breaking down to support zone. On 1HR chart showing top of support zone now acting as resistance. Not a great sign for bulls and want to see price break back up in neutral territory Continue to watch this area for a break $10,189 will lead back down to 4-digit BTC.’’Earlier this week, before bitcoin pulled back from the $10,300, another crypto asset trader noted that the gap in CME’s bitcoin futures contract could be settled at $8,500 indicating that if the bitcoin falls below, there could be a possibility that it will go down even lower than expected. Since the middle of July, Bitcoin showed some incredible movements, one of which led to a 9% rally in a matter of minutes which also led to a liquidation of the most short contracts on the trading platforms. DonAlt, the popular crypto trader and tech analyst noted that the next support for bitcoin can be found at $9,800 saying that a 4-digit drop is likely at the current cincture of the market:
“If I had to pick two places to close shorts///long it would be the two green areas below. S1: $9800; S2: $8200. Anything else is in no shape or form significant enough to me to buy in a (short-term) bear trend.’’As noted in the latest cryptocurrency news, the technical indicators show a week hand for bulls but the fundamental factors are boosting the sentiment around the market.
Tim Draper Believes Crypto And Libra Are Bridges To A Bitcoin World
“I think all these other cryptos are bridges to where we have a Bitcoin environment,” he said.Appearing in the unique trademark Bitcoin tie, Tim Draper believes that US regulators were too heavy-handed dealing with innovations like Bitcoin, blockchain and related fields - which is what he told CNBC. He did not say anything about other altcoins which might have been featured in our altcoin news section. When it comes to Libra, he said that there was no need to demand regulatory assurances before the product had even launched.
“We’re putting regulation before the innovation — Facebook’s just announced Libra; they haven’t even been able to ship it yet, and the regulators are all over them,” he continued.Currently, many best cryptocurrency news sites explore the link between Libra and Bitcoin. At press time, Bitcoin looks stable and is trading more predictably after a turbulent week which saw a lot of price swings as the Congress debated a cryptocurrency policy. Tim Draper believes that there is lack of Bitcoin support against government. He is in a lot of interviews recently, talking about being a Bitcoin bull, his investments in the crypto space as well as his outlook on the future of the crypto space.
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