Bitcoin futures trading has reigned in price spikes

Bitcoin traded in a range over the weekend between $11,000 and $13,000.

If you look at trading data over the last three weeks, since the futures markets began, the price volatility has been quelled.The huge price swings prior have been taken out, according to a hedge fund analyst I’ve been speaking with.

Using futures contracts allows a second mechanism to curtail price spikes and crashes that were a huge story in 2017. Much tighter trading ranges can be seen since the CFTC took up crypto trading under its regulation once the CME and CBOT began offering contracts.

As an aside the CFTC has said it will have staff monitoring crypto trading during the government contract.

Bitcoin has traded within $5,000 from highs to lows in the last month since the futures trading has begun. The month prior to the futures bitcoin had a $14,000 rise.

“There no confusion in the data,” said another cryptocurrency trader on the price swing suppression. “Crackdowns can temporarily dampen prices, but over the longer term we see harnesses to both the upside and downside,” the Wall Street trader added.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.