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Bitcoin Futures Have Killed Bitcoin’s Rally


Predicting the future of Bitcoin and even other cryptocurrencies in general can be hard work. You might even go as far to say that it is a fool’s errand. This is because things are always changing, but it is possible to estimate whether currency is going to be bearish or bullish based on numerous factors. This is nowhere near reliable, but it is a good way for you to try and figure out whether or not an investment is worth the risk. Yukio Noguchi wrote an article last week and this has been circulating around the internet. Bitcoin enthusiasts have been sharing it like crazy, and the main reason for this is because it argues a point regarding the Bitcoin rally. The article suggests that the rally coincides with the introduction of a futures market and this is especially the case when you look at the US market. On December the 10th, the CBOE Exchange started to try and predict the future of Bitcoin. The price for Bitcoin then reached a peak five days later. The problem is that now it is possible to trade in Bitcoin futures, and for this reason you will probably never see a rapid surge ever again, or at least that’s what Noguchi thinks. Noguchi’s own argument states that the rise and even the fall in price does not appear to be a coincidence at all. He also stated that it is actually remarkably consistent when you look at other trading behaviour and this really does accompany the markets need for an asset.

At the end of the day, Bitcoin has lost well over two thirds of its own value since the middle of December. The huge rally really has brought the price down to $20,000 and even though it has declined a lot along the way, it is worth ten times more than what it once was. This is especially the case when you go back to just over two years ago. People who have been able to make their fortune on Wall Street or those who have spent a lot of their career studying the art of investment will know that Bitcoin is something to be sceptical about. Warren Buffet who is a billionaire has stated that it is rat poison, and he has advised Bitcoin investors to beware. None of this has discouraged Bitcoin however, and this is especially the case when you look at some of the more ardent supporters. That being said, the decline in one of the most traded currencies around has left a lot of people wondering if the price will ever actually go back to what it once was. When you look at blanket proclamations, you will see that all cryptocurrencies are doomed. Economists are also pointing out that future markets are the reason why the declines aren’t able to be in sync with blockchain technology. The FED economists have pointed to the housing bubble of well over a decade ago. This was driven by a ton of financial innovations and this includes the securitization of all mortgage debt.  The bus was driven by the creation of instruments and this gives even the most pessimistic investors the chance to bet against the state of the housing market. When you look at the introduction of stock index futures in countries such as Japan, you will find that they helped to accelerate the deflation of the stock bubble in Tokyo. Optimistic investors and even speculators have driven up the price of bitcoin and this is especially the case when you look at the cryptocurrency at all. Bitcoin mania really has helped to raise some awareness about the cryptocurrency and this is especially the case when you look at Bitcoin mania in general. At the end of the day, it has helped to raise a lot of awareness and it has also helped to bring a ton of cryptocurrencies onto the mainstream market. It has also helped a lot of investors to make big decisions as well, and now lesser-known tokens have become worthless as a result.


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