Bitcoin Futures Expired Last Week, Did It Affect $10 Billion Plunge Of Crypto Markets? (cointelegraph.com)
On Jan. 29, the valuation of the crypto market plunged by more than $10 billion within a 48-hour period, from $121 billion to $111 billion.
Last week, CME Bitcoin futures contracts in the U.S. market expired.
Futures contracts in the U.S., at least for now, are all cash-settled and as such, the supply of Bitcoin futures contracts is fixed, which restricts the effect it could have on the value of BTC. Bakkt, which is set to launch later this quarter, will become the first physically settled Bitcoin futures market in the U.S. Jake Chervinsky, a government enforcement defence and securities litigation attorney at Kobre & Kim, explained that physically settled contracts like Bakkt could have an actual impact on the price of the asset in the future.
It is currently not big enough to move the price of BTC. When the Securities and Exchange Commission rejected nine Bitcoin exchange-traded funds that were based on the futures market in August 2018, the commission the also stated that the Bitcoin futures market is not big enough to handle ETFs.
In the short term, at least, the crypto exchange market will likely have a larger impact on the price trend of crypto assets over both over-the-counter and futures markets.
Original article reduced by: 88%
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Related story: Coinlab’s Mt.Gox Claim Jumps From $75m To $16 Billion, Freezing Restitution (cryptoglobe.com)
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