There is an impressive correlation between Bitcoin's price and the futures markets created on it by the two well-known financial juggernauts: the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).
As I already mentioned on one of my first publications of 2018, the start of the futures contracts (CBOE on 12-10-2017 and CME on 12-17-2017) coincides perfectly with the bubble top, of which the ATH (All Time High) close $ 20,000 was also on 17-12-2017.
These derivative products allow to bet upwards but also and especially down on the value of the asset concerned, here Bitcoin.
The bet is contractualized at a price and a date fixed in advance with very important leverage effects. It is basically the giant casino of global finance. And the Bears (financial institutions, banks) then have a privileged tool to express their skepticism about Bitcoin!
However, the economic incentive to manipulate the market of the underlying is all the stronger in the presence of a bet taken on the derivative market!
As of March 2018 circulating on the social networks the alleged actions of some fund managers, accused of having provoked the decline of the Bitcoin price to be able to generate profits, which could have prompted many savers to withdraw from crypto-markets .
But what is interesting to note today is that the Chicago Stock Exchange, the CBOE, announced in March 2019 to end its Bitcoin futures!
The last listed contracts scheduled to end in June 2019.
In my view, this is an additional indicator of a lesser influence of the most powerful Bears (big boys in finance, institutions, banks) on the crypto-market, giving the latter the possibility of 2019 to come out of his bear market.
What seems to want to prove to us, a few days after this announcement, the pump to $ 5200 ... like a boost of confidence Bulls!
As I already mentioned on one of my first publications of 2018, the start of the futures contracts (CBOE on 12-10-2017 and CME on 12-17-2017) coincides perfectly with the bubble top, of which the ATH (All Time High) close $ 20,000 was also on 17-12-2017.
These derivative products allow to bet upwards but also and especially down on the value of the asset concerned, here Bitcoin.
The bet is contractualized at a price and a date fixed in advance with very important leverage effects. It is basically the giant casino of global finance. And the Bears (financial institutions, banks) then have a privileged tool to express their skepticism about Bitcoin!
However, the economic incentive to manipulate the market of the underlying is all the stronger in the presence of a bet taken on the derivative market!
As of March 2018 circulating on the social networks the alleged actions of some fund managers, accused of having provoked the decline of the Bitcoin price to be able to generate profits, which could have prompted many savers to withdraw from crypto-markets .
But what is interesting to note today is that the Chicago Stock Exchange, the CBOE, announced in March 2019 to end its Bitcoin futures!
The last listed contracts scheduled to end in June 2019.
In my view, this is an additional indicator of a lesser influence of the most powerful Bears (big boys in finance, institutions, banks) on the crypto-market, giving the latter the possibility of 2019 to come out of his bear market.
What seems to want to prove to us, a few days after this announcement, the pump to $ 5200 ... like a boost of confidence Bulls!
Comment:
It seems important to stress one point so that there is no hope too premature:
is that the CBOE allows the powerful Bears of finance to bet down again on Bitcoin until June 2019!
In other words, in the meantime, we are not immune to a bull trap, as explained in my new publication:
is that the CBOE allows the powerful Bears of finance to bet down again on Bitcoin until June 2019!
In other words, in the meantime, we are not immune to a bull trap, as explained in my new publication:
I don't even say that futures are necessarily a cause (manipulation of the underlying for future profits).
On the contrary, they may be a consequence (high volatility at the top of the bubble = creating futures to take advantage of speculation to trade, then volatility at half-mast at the end of retracement stopping futures become uninteresting).
What I'm saying is that, cause or consequence, it does not matter! In both cases, stopping the futures is a positive sign of end of the bear market: price became too calm / end of bearish manipulation possible to profit futures.
Note that the few press articles who speak about it, see the stopping of futures as a negative sign. These same journalists at the end of 2017 were celebrating the creation of futures! It is often necessary to do the opposite of the media :)