How would Bitcoin Futures Contact affect prices?

[Wee Pea]

Can someone please give their insights?
Thanks!

[Xavofat]

In the short term, it would probably shove up the price if it begins soon, because we're quite deep into this bull market and it's possible that people would irresponsibly expect very high prices.

It's also possible that it would result in a lot of price manipulation and wash trading from major groups, because they have a much easier method of doing that while they're still not too likely to be held accountable.

In the long term, it could be a step towards weeding out the majority of emotionally unstable amateur traders, which could help for stability to some extent.

[bakunawaaa]

Dont think it will affect the price. The nature of futures is a cash contract. There is no physical or virtual delivery of the underlying asset.

[Alex_nutis]

Can someone please give their insights?
Thanks!

The output of bitcoin on "adult" markets carries also significant risks for his future. After all, unlike classical trade, that is, direct exchange of bitcoins for dollars and other currencies, derivatives can move the price both up and down. This opens wide scope for market manipulation and can not only raise, but also drop the price of bitcoin.
For example, if large traders on the same CME open contracts for billions of dollars to lower bitcoin, then there will be panic at the crypto-exchange markets and traders will start massively discarding the bitcoins, and where open-ended trading - open "short" deals or "shorts". This will cause a completely uncontrollable collapse of the price - in fact, bitcoin does not have a "bottom" and its participation in the real economy is extremely insignificant.

[Wee Pea]

But then, is it fair?
Since the markets are largely unregulated, and the common man cannot compete with the billions of dollars that these people have, market can be manipulated.
What if they start dumping after a pump, where lot of ameteurs buy as a result of FOMO?
Esp. since the BTC markets are not regulated.
Downward pressure is a good thing to stop volatility, but this can cause massive crashes as a result of market manipulation.
Who regulates these people?

[jseverson]

But then, is it fair?
Since the markets are largely unregulated, and the common man cannot compete with the billions of dollars that these people have, market can be manipulated.
What if they start dumping after a pump, where lot of ameteurs buy as a result of FOMO?
Esp. since the BTC markets are not regulated.
Downward pressure is a good thing to stop volatility, but this can cause massive crashes as a result of market manipulation.
Who regulates these people?

This is my concern as well, but if you think about it, the market really regulates itself. The more coins these people buy, the higher the value gets. It's not going to be easy to just buy millions or billions of dollars worth without taking on a significant amount of risk. A massive uptick in value thanks to them loading up could trigger people to start dumping, giving them massive losses. We have yet to see something like this happen, so it may be more difficult than people actually predict.

As for the short term effects of Bitcoin futures, I'm guessing a bull run. More demand means higher prices, but more day traders may also mean more volatility. We'll see. Either way, Bitcoin is here to stay and Bitcoin futures are not going to kill it.

[moooonu]

Bitcoin's future contracts based upon leverage system so if you pay pay 10$ to buy a contract you will get 100$ as you have leveraged 10x of the price. However people can still make money using this contract as bitcoin price is still increasing with time.

[DARKANGEL6415]

I personally think that having bitcoin futures being traded on the Chicago mercantile exchange cme and the on nasdaq stock market is a good thing. I think it will help possibly anker prices while still allowing for good growth.  Now i also think it would give bitcoin more credibility with older people who dont trust companies unless they have a listing on market exchange.

[Wee Pea]

Thanks again everyone for sharing your insights.
Appreciate your help.