Bitcoin
Tokyo Financial Exchange To Unveil Bitcoin Futures Next Year
Bitcoin Futures are coming to Japan after one of the country’s largest exchanges announced plans for the same. Tokyo Financial Exchange is in the process of creating a working group that will lay the foundation for bitcoin futures next year.
Bitcoin Futures Legislation
For the listing of cryptocurrencies in Japan, a number of changes in the nation’s securities laws will have to come into play. For starters, the country’s Financial Instruments and Exchange Act will have to recognize cryptocurrencies as financial products.
Creation of a working group usually marks the first step towards the drafting of new legislation in such matters.
“To achieve that, we will launch this working group to study various aspects, including bitcoin’s present status, its outlook, and what form it will take root in Japan’s society,” said Tokyo Financial Exchange Chief Executive Officer, Shozo Ohta.
The proposed new legislation is not expected to face any major hurdles given Japan’s stance on cryptocurrencies. The country has already shown its receptiveness towards cryptocurrencies by unveiling laws that recognize bitcoin as legal means of exchange. The country’s financial exchanges also account for nearly half of global bitcoin trading volume.
U.S Bitcoin Futures Listing
The U.S is already preparing for Bitcoin future derivatives as early as next week. Cboe Global Markets will launch its futures derivatives over the weekend as it seeks to give hedge funds and institutional investors an opportunity to take advantage of big swings in the sector. CME Group will launch its futures derivatives on the 18th of December with NASDAQ planning its launch in the summer of 2018.
Bitcoin Futures Warnings
Talk of the Futures contract has already had a significant impact on bitcoin price seen by its recent rally from $11,000 to record highs of $16,000 and showing no signs of slowing down. Amidst the hype, Wall Street banks have already started to cry foul about the upcoming bitcoin futures given the rising prices
The Futures Industry Association which represents some of the largest derivatives brokerages has warned against rushing bitcoin futures contracts without weighing the risks. The Association members have reservations about the reliability of prices underlying the upcoming contracts.
“A more thorough and considered process would have allowed for a robust public discussion among clearing member firms, exchanges and clearing houses,” FIA in a statement.
The U.S Federal Reserve has also warned against dabbling in cryptocurrencies as it could pose significant dangers to financial stability. With the consistent increase in price, fears of a bubble burst have also increased.
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 ibz_omar via Flickr
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
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Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
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Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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