Last Monday, on December 11, Chicago operator Cboe Global Markets first started trading futures for BTC, which caused a stir in the market. This exchange was forced to suspend trading due to the rapid price increase in order to reduce volatility, and the growth of traffic to the Cboe site led to a slowdown in its download.
A week ago, these futures with execution in January 2018 traded around $18790, February futures – $9140, March – $19120. Trades began at the point of $15 thousand – thus, the price of futures for a few hours of trading soared by 25%. At the same time, the price of the BTC itself was $1694, behind the futures by 10%. At the time of the article writing, BTC is trading around $18985, while the futures price is $19370(Jan), $20000 (Feb), $20030 (Mar). We have to note that the June futures return to the point of $20000, which indicates a predictable decrease in the volatility of the instrument.
Since its launch, the price of BTC futures has exceeded the historical maximum set by BTC itself. Thus, the futures market reflects the expectation of setting new price records for cryptocurrency in the coming month.
Against the backdrop of a sharp rise in prices, on the first day of trading futures, the stock exchange stopped the trade twice. The first stop occurred approximately 2.5 hоurs after the session start, and the second – after four hours. There were more than ten such stops throughout the week. The thing is that Cboe automatically suspends trading for two minutes if prices rise or fall by 10%, and for five minutes – with growth or a fall by 20%.
From this week, Bitcoin futures will be offered by the largest futures trading platform – CME Group. Professional traders will be able to arbitrate between Cboe futures, CME futures and BTC itself, increasing the efficiency of pricing.
The market has quite positively accepted the launch of Futures, considering the cost of which they are now traded. Analysts predict that in the coming weeks we can see further growth of the rate if there will no force majeure event. While looking at the volume of contracts, they believe that there is a decent demand, and this spurs the cost of the BTC. Prices are rising due to increased confidence.
The introduction of futures on a regulated exchange is a turning point for the market. Numerous professional traders and key investors have the opportunity to become a part of the crypto-market. Until now, BTC has been traded only by individual investors who were ready to take risks in unregulated markets.
With the growth of the popularity of this trading instrument, we will see even more providers of different cryptocurrencies and further growth of the BTC rate. Futures appearance and integrating the cryptocurrency and classical economic instruments will ultimately lead, most likely, to less volatility in the market. Rallies, similar to what we saw this month, will meet less and less, because with the increasing audience, the problems of market volatility will be reduced, and in the long term the market will become a little more predictable. At the same time, analysts are confident that the trend towards further growth of BTC will also continue.