Bitcoin Price is Going Higher: Futures Traders View

 

Last week, after the Chicago Options Exchange (Cboe) started to offer cash settled bitcoin futures, the price has jumped 7% to $16,341 on Thursday.

The futures market means speculators can now bet on the price of bitcoin being higher or lower at fixed dates into the future and hedge any long positions, or just bet on the price falling.

Contracts will be listed for expiry over periods a week out, a month out, or three months out, with an expiration of “three near term serial months” according to the Cboe.

In other words futures are currently being traded for settlement on 17 January 2018, 14 February 2018, and 14 March 2018, with the nascent futures market currently pricing in a slight rise in the bitcoin price over the next 3 months.

Speculators can currently buy a cash settled derivative contract to buy or sell exposure to the digital currency at US$17,690, US$18,940, or US$18,880 over the three separate monthly periods ahead.

Over the short-term period the price is heading higher, consensus  says, although in the case if a bitcoin price crash does occur anyone selling the contracts could make some eye-watering profits.

The exchange’s website crashed at the start of trade due to the amount of traffic being directed towards it, caused by rising interest in trading of bitcoin futures.