Bitcoin Futures for Dummies – Explained with CLEAR Examples!
In Q3, an average of 5,000 bitcoin futures were traded on the Chicago Board of Trade (CME) daily, up 43% from the previous quarter.
During this period, CBOE and CME registered about 9 thousand contracts in total every day. Despite the growing dynamics of market activity, analysts say that settlements for BTC futures now practically do not affect the base coin rate. This is due to their insignificant share in the total volume of contracts traded on exchanges, the number of which only on CME reaches 18 million..
The weakening of the settlement factor for futures, together with the absence of strong shocks in the crypto market, led to the fact that in October there was the lowest level of bitcoin volatility in all of 2018. Fluctuations in the MTC exchange rate over 5% were recorded only once in a whole month.
Although this year, May, June, August and September were also quite calm. During these months, there were only 3 days each when the price of digital gold changed by more than 5%. Today the average monthly rate is 4.7 days. However, many expect the situation to change dramatically after the launch of new bitcoin futures. the world’s largest derivatives market operator Intercontinental Exchange (ICE) on its Bakkt trading platform.
text: Ivan Malichenko, graphic: Bloomberg, photo: lockerdome