The Bitcoin price is influenced by many different external factors. Issues on the network are one of the reasons why the value has taken such a big hit. Transactions remain slow and overly expensive, which has been a problem for some time now. However, there is also the Bitcoin futures market to take into consideration. The first batch of CBOE futures will expire shortly, which may create new Bitcoin price momentum. Whether or not that will be positive or negative, remains to be determined.
One would almost forget the first batch of CBOE futures is coming to an end soon. These contracts only last for a few weeks, after which investors will need to set up new positions. With the current Bitcoin price at such a low value, it is certainly possible a lot of people will go long. At the same time, plenty of shorts can send the price spiraling out of control in a negative manner. For now, it is unclear which direction the market will head in. Things are not looking all that great, though, to say the very least.
Another Round of CBOE Bitcoin Futures
The hopeful enthusiasts expect to see a nice Bitcoin price pup in the coming days. More realistic traders expect zero impact, as this correction seems far from over. So far, the CBOE futures have had very little effect on the market value of one Bitcoin. Then again, things can evolve rather quickly in this regard. Any sort of impact would give us a clear indication of what to expect, Right now, it is anybody’s guess as to how low we can really go.
Every single year, we see major price corrections like this one. Interestingly enough, those corrections occur around the same time in January as well. In most cases, they’re quite volatile, with losses of up to 40% in a matter of days. So far, the Bitcoin price seems to follow that pattern once again. It is doubtful this will last for long, though. Anyone interested in CBOE futures needs to take into account how Bitcoin usually bounces back rather strongly. Opening a light position right now would make a lot of sense, but it remains a big risk.
How the markets will respond to this new batch of CBOE futures, remains to be seen. It is evident few people pay any notice to what institutional investors think. If there is one thing most people learn quickly, it is how the Bitcoin market seemingly does its own thing. At the same time, the expiring futures will potentially lead to some interesting Gemini Bitcoin auction action. An interesting few hours are ahead of us, that much no one can deny. For better or for worse the CBOE futures will remain in place for quite some time to come.
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