Closing the gap: The effect of CME Bitcoin futures on Bitcoin price
Cointelegraph
Published Oct 18, 2020 11:00AM ET
Updated Oct 18, 2020 01:20PM ET
The price of one actual Bitcoin on the open crypto market, known as spot BTC, fluctuates based on a countless number of factors, such as trading volume, usage and adoption. However, other catalysts affect the asset in a roundabout manner. Cash-settled Bitcoin futures trading products from the Chicago Mercantile Exchange stand as one arguable highly referenced indirect element contributing to Bitcoin’s (BTC) price direction.
“The Bitcoin derivative products offered by CME are simply a vehicle for accredited investors to place sophisticated and risk-offsetting trades that would otherwise be inaccessible to them,” Shawn Dexter, a decentralized finance analyst at Quantum (NASDAQ:QMCO) Economics — a markets analysis firm — told Cointelegraph on Oct. 8. “This leads to both, short-term and long-term impact on price.”
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Written By: Cointelegraph
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