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CBOE Bitcoin Futures (XBT) Begin Trading

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Bitcoin Futures (XBT)
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The Chicago Board Options Exchange (CBOE) launched Bitcoin futures trading on December 10, 2017.

Over 4000 contracts were traded on the first day, causing two temporary trading halts as a result of the high volume.

Bitcoin Futures increased by about as much as 26% over the course of the first trading day, while Bitcoin itself hit a new all-time high of $17,270 during the same trading session.

The Bitcoin futures contracts are identified by the ticker symbol XBT.

One Bitcoin futures Contract is for 1 Bitcoin (BTC).

Forty percent margin requirements allow for leveraged trading; roughly about $8,000 to $9,000 per contract.

Below is a chart showing the Bitcoin Futures trading activity for the first day of trading, next to a 5-minute chart of the underlying Bitcoin for the same trading day.

A Futures Market for Bitcoin will have a positive effect on the cryptocurrency market in general.

First, being an underlying asset for derivative financial products listed on reputable exchanges such as the CBOE, and soon to be listed on the Chicago Mercantile Exchange (CME), will serve to legitimize Bitcoin and other cryptocurrencies in the eyes of those market participants that remain skeptical about the market.

Accessibility to the cryptocurrency market will be greatly enhanced to those institutions that are currently prohibited by government regulation from owning Bitcoin itself.

These institutions will now be able to participate in the Bitcoin market via Futures and other derivative products.

Furthermore, businesses that have avoided using Bitcoin as a form of payment for large-scale transactions that involved terms, due to the unpredictable volatility of the currency, will now be able to guarantee the value of a transaction using futures contracts to hedges against adverse market price movements, similar to the way businesses handle international transactions.

This will continue to create even more demand for Bitcoin.

Traders will now be able to hedge risk using trading strategies with combinations of Bitcoin Futures and positions of the underlying.

Being able to protect against downside risk in a Bitcoin market that is making unbelievable highs on unprecedented volatility, will ease trader’s concerns about the so called “Bubble” bursting, and Bitcoin losing all of its value overnight.

Consequently, traders will continue to enter the Bitcoin market at its highs, and the increased demand will continue to push Bitcoin even higher.

Long-term investors will also benefit from mitigating risk, and be able to create premium yielding investments using existing Bitcoin market positions that are in-the-money, along with short positions in the Futures.

We see this as the first step.

This should lead to futures contracts for other cryptocurrencies, and then eventually to Cryptocurrency Exchange Traded Funds (ETF).

We will be watching the Bitcoin Futures Market very closely.

We will be updating our subscribers as soon as we know more. For the latest updates on XBT, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Richard Yuan via Flickr

Bitcoin

Why Bitcoin Price Remains Stable Before the Expected Hike

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Bitcoin price
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The cryptocurrency rallied a few days back, but now, it has moved closer to 38.2% Fib level. Investors are enthusiastic that as it remains at this level for some time, and stabilize. The next move in Bitcoin price will take it to the 61.8% Fib level. This is when the hike in the price of the cryptocurrency will occur towards $4,200. However, after the surge in price, the upcoming weeks will see the Bitcoin falling swiftly to $3,000.

The truth is that if this move fails to occur, there may not be an improvement in the value of the digital currency. Also, this movement will enable the “bullish gartly pattern” we saw on the BTC/USD 4H chart to become a reality. Also, we are expecting that the Bitcoin price will decline the same way it has been recovering since early February.

Why this week’s closing price matters

Presently, Bitcoin price is still trading above what the intrinsic value is showing on larger time frames. However, we can see adequate room to accommodate short-term rallies. The price at which Bitcoin closes this week is very critical. It will be a clear indication as to how the digital currency will move in the coming weeks.

If Bitcoin closes at a price above $4,000, we are hopeful that the correction may come from early next week. On the other hand, any…

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Bitcoin

Stanford Lecturer praises XRP over Bitcoin

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The world of cryptocurrencies continues to cause controversies even now, particularly when it comes to matters such as the superiority of one coin over others. According to recent reports, one student from Stanford University has stated that one of Stanford’s guest lecturers — Dr. Susan Athey — bashed the first and largest cryptocurrency, Bitcoin, while praising XRP.

Does guest lecturer go anti-Bitcoin?

In late February, Stanford’s student called Conner Brown came out publicly with a claim that Athey described Bitcoin’s network and protocol inaccurately, and that she also used the opportunity to make unfounded criticism. Athey, who also sits on Board of Directors at Ripple Labs — XRP’s parent company — supposedly also stated that XRP provides solutions to all issues mentioned in regards to Bitcoin.

According to Brown’s comments on the matter, the lecture in question took place over a month ago, and after attending it, he wrote an open letter to Standford, explaining the incident. In the letter, Brown claims that Athey inaccurately presented Bitcoin’s consensus protocol and overstated several issues, such as the threat of a 51% attack on the coins network, as well as Bitcoin’s mining centralization.

However, the main problem with the lecture, as Brown sees it, is the professor’s claims that XRP presents a solution to these problems.

The claims caused Dr. Athey to respond publicly via Twitter, stating…

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Bitcoin Chasing Green — First Positive Month Since July In Sight

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The crypto market has started seeing gains in mid-February, with Bitcoin (BTC) following the bullish trend as well. In fact, the largest coin was on its way of seeing the first positive month since July of the last year. Even though its price was struggling to permanently overcome the major resistance at $4,000, the coin kept trying, and as long as its price doesn’t drop below $3,414, this goal can still be achieved

The return of the bearish trend which briefly overtook the market on February 24th caused a lot of damage, although Bitcoin managed to remain above $3,800. Following the crash, BTC started seeing minor gains once again, indicating that the bears have withdrawn for now.

What does the future hold for BTC?

As mentioned, Bitcoin can only complete a positive month if its price remains above $3,500 until the end of February. At the time of writing, the price sits at $3,807 according to TradingView, with an increase of 0.58% in the last 24 hours. As things are right now, it is likely that BTC might succeed in doing this, as its price performed relatively well ever since January 11th, even though it remained between $3,300 and $3,700.

Chart courtesy of TradingView

The recently-emerging bullish trend took it beyond this, and while the price…

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