Bitcoin Futures Contracts Expires Soon as Price Awaits in Anticipation
On the 27th of July, BTC futures contracts are expiring, handed in by CME Group, a leading derivative company. As a product that permits companies and traders to bet on how a digital asset will perform on the market in the future and as seen before, Bitcoin may possibly drop as it has before within the few days leading to its expiration date. An average of the previous drops by BTC round up to 8 percent.
Data has pointed to a possible positive withdrawal for BTC’s price and attributed factors are possibly in effect. BTC futures are seeing significant gains for its market as CME reported a whopping 93% climb in the second quarter, along with an open interest of 58 percent.
The company’s futures showed a steady increase into the third quarter of 2018 and acquired almost 65000 Bitcoin to set a new record of contract numbers. Several critics have pointed fingers at BTC futures and claimed that price was directly affected by it despite the positive adoption of the coin and its investments. Traditional investment faced several hardships at shortening the market before bitcoin contracts and the investment method has provided bears with a chance to stand by bulls and speculate on the market.
As of now, Bitcoin is currently worth more than $8K, climbing up 41% since its yearly struggling low of $5.7K in July. A possible recap of Bitcoins previous price may occur given the charts and their long-lasting periods including the Relative Strength Index climb of late 2017. Bitcoin has dropped in the last week as the futures contracts expiration date closes including four of these previous expirations.
Previous expirations in January and March saw drops in price. January took a 13 percent drop followed by a 20 percent drop in March. Since Bitcoin’s record high of $20000, last year was alongside CME’s announcement of the first BTC futures contract. Since December, BTC’s price has been dropping consistently and heavily. Evidence shows that Bitcoin has a drop of almost 60 percent since its prime high.