![]() ![]() ![]() It’s the same theory of supply and demand behind the idea that bitcoins, capped at 21 million coins, are scarce and therefore valuable.īut, if you believe in efficient markets, then you’d have to think a pre-scheduled event that 99.9% of all bitcoin holders know about and eagerly await would have to be “priced in.” Then again, it’s hard to say crypto markets are efficient. There’s certainly something reasonable about the idea that the fewer new bitcoins released into circulation (as part of the “mining subsidy, which is halved programmatically every four years - hence “the halvening”) will be good for bitcoin’s price. It’s also a kettle-of-worms getting into the question of whether the Bitcoin halving is priced in, especially at this point, when it is still six months away. To be sure, the chief investment officer of a crypto investment company has many incentives to believe something like that and drum up support for that thesis. Bitwise Chief Investment Officer Matt Hougan essentially said that all the bitcoin ETF hype is not fully “priced in” yet. ![]() They’re essentially a hedge against a future price movement, and are commonly used to bet that you can buy an asset today for less you could at a later date.Īnd lot’s of people seem to think bitcoin has legs to run, yet. Or, it’s because they are taking bets that the narratives around a potential spot bitcoin exchangetraded fund (ETF) being listed by year’s end or the Bitcoin halving on the docket for next year will spur even more buying.įutures are a type of derivatives contract that requires buyers to purchase bitcoin at a predetermined price at a later date. Perhaps this interest is being driven by bitcoin’s price, which has rallied over 100% year-to-date, and institutions want a little bit of the action. Open interest refers to the dollar value of existing futures contracts. See also: Ethereum Futures Are Now Trading on CMEĭon’t just take my word for it, CoinDesk’s markets guru Omkar Godbole said CME is “considered a proxy for institutional activity” in crypto, on CoinDesk TV’s “First Mover.” “What we are seeing right now is a good old pump of open interest on the CME futures,” he said. Whereas, with Binance and co., I think very few people are putting on ties to go to work to trade bitcoin perps on a native crypto exchange. CME, which incidentally but (please believe me) unrelatedly is the sponsor this week for The Node newsletter, is often seen as The Exchange for Grownups. ![]()
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