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.

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