Previous halts were triggered on Sunday evening when the futures debuted. The bitcoin futures expire in January, settled at 5.7% at $17,055 later on Wednesday when trading resumed again.
“if you short bitcoin today, you’ll make money,”
but he also admitted it could trade higher in the short term.
The whole thing about bitcoin futures is that it lets traders bet against bitcoin, in theory, by selling contracts. Another bitcoin futures is set to launch this Sunday from SME.
Bitcoin plummeted 9.1% to a low of $15,799.87, and at the time of writing has recovered to $16,711.
The pause in trading aside, what does all this futures trading mean? Will being able to bet against bitcoin impact the dynamics of the crypto market? One thing that’s for sure is that futures give an air of legitimacy to the entire crypto scene. It was always seen as a dark horse, having evolved far away from any overseers or regulation.
Interactive Brokers said it would protect against the shorts by setting aside five times the value of the futures contracts to cover themselves against potential losses. This means placing negative bets against bitcoin is much more expensive than positive options.
I’m still waiting for the bubble to burst. Although I’ve got a hard drive in the loft with 3 bitcoins on it I mined eons ago. If anyone knows what password I used, please let me know as I haven’t got a clue.