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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