Connect with us

Bitcoin

CBOE Bitcoin Futures (XBT) Begin Trading

Published

on

Bitcoin Futures (XBT)
READ LATER - DOWNLOAD THIS POST AS PDF

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

The rise of the crypto casinos

Published

on

crypto casinos
READ LATER - DOWNLOAD THIS POST AS PDF

In the hyper-competitive world of online casinos, operators are always looking for ways to stand out from the crowd. The most usual methods include using distinctive branding, offering generous bonuses and making sure that they are on all of the major so-called affiliate sites where players can compare and contrast casinos’ different offerings.

But now a whole new generation of casinos are starting to emerge – ones whose key difference isn’t what and how you play, but more in how you pay.

The rise and rise of the cryptocurrency casino is seen by many as the next logical step in a world that is slowly but surely starting to accept that Bitcoin, Ethereum, Ripple, et al. are certainly here to stay.

Of course, it’s the first of these cryptocurrencies that has really grabbed the headlines and led the way with its meteoric performance in 2017 when it seemed like its $20,000 value was just the start of the story. Admittedly, this was short-lived and the value quickly fell back to a more sustainable level but, if it achieved one thing, it was to cement this exciting new kind of currency in the consciousness of the general public.

Why Bitcoin and online casinos are the perfect partners

In many ways, it’s the perfect partnership between Bitcoin and online casinos with multiple benefits for both.

The first of…

Continue Reading

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

Published

on

Bitcoin crash
READ LATER - DOWNLOAD THIS POST AS PDF

The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

Continue Reading

Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

Published

on

Bitcoin
READ LATER - DOWNLOAD THIS POST AS PDF

Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

Continue Reading

Elite