Well today is the day bitcoin will enter into the mainstream in terms of investing, futures contracts will start trading on the CBOE. As of December 10th at 5 p.m. central time the XBT (bitcoin) futures will officially start to trade while next week futures contracts will trade on the CME.
While this will open up new markets for bitcoin, it could actually turn out to be a bit on an anchor for the price of bitcoin because it will allow sceptical investors to actually bet against BTC. I think the price of bitcoin might be more vulnerable to price manipulation because of the fact that a small number of investors own 40 percent of bitcoin could use this as a way to cash out of bitcoin while making money on the downside. Assuming the big money in BTC is up significantly on their BTC holdings they can short futures contracts then sell some of their holding driving down price. The contracts are cash settled so there is not the risk of delivery of bitcoin, as you can see there could be a tremendous amount of manipulation in the price of Bitcoin. Either way I think we are in for a rollercoaster ride for the next few weeks. Perhaps this is an opportunity to take a bit of profit off of the table and see where this thing settles.
What do you think? Is this the top for bitcoin or are the best days yet to come?
Good article on bloomberg about bitcoins whale problem https://www.bloomberg.com/news/articles/2017-12-08/the-bitcoin-whales-1-000-people-who-own-40-percent-of-the-market
Just shared my opinion with my post.
https://steemit.com/bitcoin/@gordon.clumsy/selling-bitcoin-is-a-mistake-let-s-support-holding-bitcoin