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.
Tom Lee Predicts: Bitcoin Will Recover And Will Reach $15,000 By The End Of 2018
“But we believe the negative swing in sentiment is much worse than the fundamental implications.”Lee explained a few crypto-related events that were likely the cause of the recent drop in value on the entire crypto market that happened on November 14. More specifically, he believes that the recent Bitcoin Cash hard fork has really divided the community and that this event is a big contributor in boosting the uncertainty on the market which is responsible for the recent crash. The recent drop, three days ago, is the first major price movement among the major coins and for bitcoin in particular. Lee noted back in November that he was ‘’pleasantly surprised’’ by how stable bitcoin is. At this time he believed that Bitcoin has found its safe space at $6,000.
A New $4 Billion Drop Sees Bitcoin Cash – And The Entire Market – Falling
Financial Analyst Gary Shilling: Bitcoin Is Some Kind Of A Grand Ponzi Scheme
“There’s supposedly a limit on there, but where is it written in stone that can’t increase? And of course, the electricity that’s churned out by the miners trying to solve these algorithms is just extraordinary.”He dismissed bitcoin by calling it a black box which is a very complex investment model. Also, Shilling noted that he is very suspicious of many things that are clearly not transparent and said that it is not the best idea to invest in something if you don’t understand it. There are plenty of reasons why bitcoin fails as a currency such as not being a store of value, it’s also not a medium of exchange and it is still not accepted universally.
“All the requirements that you normally have for a currency, it just doesn’t have. The only legitimate use I can think of in bitcoin is off-the-books kinds of transactions, underworld transactions. I just don’t see a legitimate use. It is a game,’’ said Shilling.However, the younger generation of tech millionaires is extremely confident that bitcoin will eventually manage to toss aside all other currencies. Some of them even predict bitcoin to reach a price of $250,000.
‘Time May Be Right’ For Home Crypto Mining: Coinbase CTO
“The big difference with decentralized mining in 2018 is that there are now so many different coins and tokens out there that it’s almost certainly possible to make a profit – or at least mine a decent amount of some crypto – via a decentralized home mining device like Coinmine.”This is a notable perspective mostly because Srinivasan previously founded 21.co which was a startup that emerged from stealth in 2015 and had an ambitious plan to embed Bitcoin miners in everyday devices- which was then backed by Coinbase Ventures. Following the Coinmine announcement, Srinivasan wrote:
“The big difference with decentralized mining in 2018 is that there are now so many different coins and tokens out there that it’s almost certainly possible to make a profit – or at least mine a decent amount of some crypto – via a decentralized home mining device like Coinmine."As we can see from the above stated, the CTO of Coinbase seems optimistic about Coinmine's ability to add even more coins later, foreseeing a future where the company could play a key role in the launch of new tokens.
“I believe that decentralized mining is an important idea and worth trying again. It’s mining as Satoshi intended: many devices around the world with no single point of failure." Srinivasan concluded.
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