BTC could grow as a result of Ethereum futures
Even in a shrinking market phase, the development of this nascent raging industry, with companies continuously releasing innovative products and services that could change the future of cryptography . And as reported by Ethereum World News previously, the CBOE, the main options exchange based in the United States, is a few months from the launch of Ether futures that will be based on the Gemini markets.
This news immediately aroused speculation about the effect this vehicle would have on the market, with many optimists noting that this futures contract should help push the price, development and maturity of Ethereum and, subsequently, growth of this sector.
While many were in agreement with this hope, Tom Lee, the head of research at Fundstrat Global Advisors, expects this news to benefit the price of Bitcoin (BTC) more than the price of Ethereum (ETH).
Speaking to Business Insider reporters, Lee, who became famous, if not nearly infamous for his seemingly confident bullish sentiment on Bitcoin, noted that the future of Ether will allow speculators to weigh the price of money. Eth.
His claims appear to be corroborated by the historical action of Bitcoin prices for the release of the initial CBOE and ECM futures. Since Bitcoin futures debuted in mid-December last year, prices hit hard, with Bitcoin briefly touching $ 20,000 before collapsing to $ 7,200 today. Some think that is not an unfortunate coincidence, but rather the effect of the short sellers who bet against Bitcoin through the futures market.
As such, the Fundstrat Bitcoin bull noted that the same effect, though probably not as drastic, could also occur this time, with the planned introduction in December 2018 of the future contract on Ether supported by the CBOE that could align with a substantial drop in the price of ETH.
On the other hand however, Lee added that the introduction of Ether futures could alleviate some of the pain posed by the bears at Bitcoin, since the brief interest could translate from the BTC contract to the ETH contract. The executive of Fundstrat has elaborated, stating:
"Since December of this year, if one has been bearish on any aspect of the crypt but does not want to own the underlying, it could close the BTC. short, means that the net short on BTC in the futures will fall. "
Some skeptics of this theory have pointed out that it is somewhat counterintuitive, but after thinking about it further, it is clear that Tom Lee's thinking holds a little bit. of belief at least.
Ethereum has already had a bad year, many hope that the possible introduction of these futures will not further hinder the price of the asset. But for now, only time will tell what will be the short-medium term fate of the second largest cryptographic resource.
At the time of writing this book, Ethereum is down 1.4% in the last 24 hours, as it currently stands at $ 294 after falling from yesterday's highs to $ 303.
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