Tradable On The CBOE Are The Bitcoin Futures 

All About Future Contracts Trading For Bitcoin.

Trading on the world’s largest futures exchange CBOE is the Bitcoin futures. Launching Bitcoin it spiked within a minute about 10% from ~$14,700 up to $ 16,200 even before settling a few minutes later to around $ 15,500 up about 5%. The actual price of Bitcoin an hour after launching is still up trading around $ 15,350. The settlement price of the futures contract is currently pegging the digital currency’s future price at $ 15,700 where it is relatively little volume being traded as each contract is pegged at one Bitcoin in the context that volume exchanged has totaled about $ 7.7 M with actual dollars traded being less since the contract only requires a 30% margin requirement.

Hitting the circuit breaker at least once after the trading started, it stopped trading for 2 minutes after a 10% move and 5 minutes after a 20% move up or down. While trading for the settlement date 516 contracts with a couple of contracts for a later settlement date have traded so far. Going down on the futures trading launched CBOE’s website showed this was mainly because of a spike in interest as the not necessary trading volume where trades need to be made through a brokerage platform where the CBOE’s site provides quotes and information and not the functionality to trade options.

What Are The Chances Of Trading Spikes For Bitcoin?

There are chances where the activity spikes tomorrow when the trading week starts as so far the volume is much less as most expected. While as a refresher the CBOE is launching three futures contracts with their settlement price being bitcoin’s trading price, the CME group launches their futures product later as of now these two products are the only way for investors to trade the digital currency without actually holding it themselves. 

It is a common thought that the futures product helps stabilize the price of Bitcoin as well as hasten the adoption by Wall Street whereas others think it’s as a sign regulators are easing their view on the digital currency which could lead to approval for the future products like a Bitcoin ETF. 

Bitcoin Rallies As Allegations Of Trading Irregularities Swirl

While it has been a torrid few days for Bitcoin, it is globally known cryptocurrency with price rally kicked off that has over the past week pushed the value of Bitcoin up by around 25 percent. Bitcoin is still down around 50 percent for its record trading near the $ 580 mark, but the life that its showing could once again bolster consumer interest in the stuff. Bitcoin transaction trading volume isn’t interestingly up as daily Bitcoin transactions are settled into a consistent range of between 50,000 and 75,000 per day according to Coinbase. 

The transaction volume meanwhile is flat with total traded Bitcoin sharply on major exchanges seeing about the same number of transactions with each trading event involving more Bitcoin. This means that the rally itself comes at a soul searching moment for the Bitcoin whereas recently published investigation is called Willy Report alleging that bot accounts on the Mt.Gox exchange led to massive price inflation as it saw Bitcoin reach its record highs.

What Are The Current Trading Trends?

According to the news going around, there has been a pushback since with some arguing that the Chinese Bitcoin markets were leading drivers of the past price spike. Whereas other criticisms have centered on the idea that one or two trading accounts could not have influenced so large a global market. With the Bitcoin price being yo-yoed, a closer eye on bitcoins transaction volume has revealed than its current dollar conversion price. In the case of the Bitcoin network that keeps growing the key metric of expanding adoption in the view is transaction volume rising implying greater implied potential utility per coin increasing their value. 

The question arising is which usage metric do we care more about? Is it transaction volume or total bitcoins traded? In case it is both, really it is rising raw transaction volume pointing to more pedestrian usage of Bitcoin where not everyone is going to buy or sell several bitcoins at once, as Bitcoin fans try to tie the cryptocurrency into normal life expecting to see rising numbers of small purchases as they are succeeding.

The Conclusion

Rising Bitcoin sales imply whatever the case is and a rally means that big dollars are buying into the cryptocurrency. Keep the fingers crossed and stay tuned for more from Bitcoin and Bitcoin trading.