What exactly is the ‘Bitcoin Futures’ market?
A Bitcoin futures market is a place where you can speculate the price of a coin that is not currently available to trade.
Currently this is being used to gain market insight into the price of what people expect new coins to hit.
You can see futures markets in action on OKEx and Bitfinex.
So futures are being released on the 10th of this month - what do you think the implications will be for bitcoin?
I cover it in the Wirex weekly news update:
In my opinion there will be a big price correction starting on the 10th (or just before) that could be up to a 50% drop; Bitcoin might recover by Christmas, as yearly there is usually a large upsurge in Bitcoin buying during Christmas.
When the futures market’s open on the 10th and 18th; banks, funds and more will finally get the tool they’ve been wishing for to short Bitcoin after being proven wrong for years.
If you want to get involved just be prepared that there may be a correction (50% price drop, that might recover), and also think about potentially buying during the drop and not before it.
This is opinion and not financial advice.