BitMEX XBTZ19 Bitcoin futures contracts will result in high Bitcoin price volatility

In December 2017, Bitcoin futures were first introduced on the CME and CBOE cryptocurrency exchanges. Before that, many expected that asset class to support Bitcoin price hikes. Looking ahead, on December 27, 2019, the Bitcoin futures contract on BitMEX will expire. And many Bitcoin price forecasts from “crazy” to “terrible” continue to appear.

Bitcoin price shows high volatility jumps as BitMEX futures to expire

After CME and CBOE, other trading platforms are also starting to add Bitcoin futures, such as BitMEX. In September 2019, Bitcoin futures were announced by Bakkt and Binance. However, at this point, things are not going very well.

About a week later, things were getting better when the Bitcoin Bakkt futures traded for nearly $50 million.

On December 27, 2019, BitMEX’s XBTZ19 contract will expire. And according to crypto analyst Jacob Canfield warned, after that day, Bitcoin prices will fluctuate during the liquidation of futures contracts on BitMEX. Bitcoin futures on CME will expire on December 27 this year, too.

Futures contracts are not a threat to Bitcoin

Well-known cryptocurrency analyst PlanB said that he did not see any danger from Bitcoin futures to the price of the leading cryptocurrency.

Even if central banks start the future selling large BTC amounts, the future prices will be controlled below the spot level, but the spot market will not go the way. The main factor here is that the supply of Bitcoin is inelastic, unlike gold.

Bitcoin hashrate has dropped

Bitcoin analyst Jack shared a chart showing Bitcoin hashrate returned to a low level after reaching a high of 111.86 EH/s.

Jack explained Bitcoin hashrate could impact Bitcoin’s price by increasing pressure on miners by reducing the price. Hypothetically, when the price drops, the percentage of them who sell the amount of Bitcoin mined will increase.

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