Dec 31, · BITCOIN'S value has risen by approximately percent in , after reaching the significant price per coin of $28, Max Keiser claims 'the next short target is $35,'.Author: Brian Mcgleenon. Jan 02, · Bitcoin Will Rise Above $, In was unforgettable, especially for Bitcoin. To help memorialize this year for our readers, we . Oct 23, · Of the first 20 months that the CME Bitcoin futures were issued, Bitcoin lost in value in 15 out of 20 cases (75 percent) approximately days before expiry. The study showed that since January Bitcoin has tended to decline by an average of .
Will bitcoin rise after futuresHow and Why Bitcoin Futures Became So Popular - Decrypt
Futures contracts effectively act as a bellwether which in turn can create a feedback loop that pushes the spot trading price up further. Futures trading can also be used to insulate speculators from the volatility investing in crypto can bring. As a result, many traders hedge their bets by taking out multiple futures contracts that bet on the market moving in either direction. Depending on their confidence in which way the markets will move, futures traders typically allocate more contracts in their favoured direction while placing few contracts the other way.
If they lose, it softens the losses. Futures also allow investors to amplify their profits and their losses through leverage. Leverage allows an investor to put down an amount of money and gain access to a greater amount. Futures trading is important for Bitcoin because it provides an additional layer of sophistication to the underlying asset, much like you see with other assets like oil, and gold. Futures markets have become an on-ramp for many investors to get involved in Bitcoin.
Thanks to the tighter regulation that is required in order to offer futures contracts to investors - AAX being one such example - it's seen as a more investor-friendly way of getting your feet wet with crypto. As more investors see the potential for adding Bitcoin to their portfolio, so the growth of Bitcoin futures is likely to continue. In particular, perpetual futures contracts. These are bets that have no closing dates.
Instead, the contracts are kept open by charging fees. These are often preferred by investors as they don't mean they have to keep repeating the trade every week or however long the contracts are set for.
AAX allows you to trade bitcoin futures in a compliant and secure environment. Also, AAX allows you to trade with up to x leverage when trading Bitcoin futures.
You can sign up now to get started with trading Bitcoin futures on AAX. This sponsored article was created by Decrypt Studio.
Learn More about partnering with Decrypt Studio. Please see our Privacy Notice for details of your data protection rights. Speaking of the fragile confidence in the future purchasing power of fiat currency Michael Saylor tweeted: "It is impossible to properly pursue your corporate mission if you are investing your capital in a currency that is collapsing in value. Speaking on the Investor's Podcast Network Mr Saylor posed the question of how to preserve the value of a person's individual treasury over time.
He spoke about the inflation of desirable assets being much higher than the consumer price index for inflation rates used by central banks. He added: "When you buy a bitcoin you're buying a scare piece of property on a global liquid monetary network".
He described bitcoin investment as being better than another value store such as buying property, because "bitcoin is liquid, global, fungible, has no property tax on it and can be taken anywhere on earth".
Speaking to Express. Mr Keiser added: "Every time a smart hedge fund guy puts aside their ideologies and dogma and takes a close look at bitcoin, and sees it for what it really is, a superior version of gold, they start buying.