Bitcoin In Contango: How Pricing Differences Can Foreshadow Further Gains
Major differences in the spot price for bitcoin and the cost of buying the cryptocurrency in the futures market create unique opportunities for traders. Several factors may be behind this development, but it could be bullish for the bitcoin price outlook no matter the catalyst. Curious Developments Could Highlight Supply Shortage or Heightened Derivatives Demand As bitcoin gradually matures and the ecosystem surrounding it expands further, the original cryptocurrency is increasingly behaving like a commodity. Thanks to a robust futures market that continues to grow, derivatives contracts....
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I do not know about you, but often times, I find it difficult to select the best Bitcoin pricing index. Just recently I learned ofCoinprice.us, created by Rich Morgan, software developer at BitPay and longtime Bitcoin fan. Rich chose to create a more reliable pricing average and pull from BitStamp, BTC-E, CampBx and BitFinex. With a goal of creating a clearer pricing site, even the white background ofCoinprice.us allows the bolded black prices and average to stand out. Prior to learning about Coinprice.us, I used to be a fan of Bitcoin Wisdom. Still a valid pricing index, Bitcoin Wisdom....
Bitcoin bulls may get some respite from a derivatives market indicator that hints at a price bottom. As the price of Bitcoin (BTC) is attempting to establish support at $37,000 on Tuesday, the recent $30,000 lows may have been the bottom, suggests one derivatives market indicator that has a history of accurately predicting BTC/USD cyclical lows following its bear cycles. The last time it predicted a bottom was on Nov. 1, following which the cost to purchase one Bitcoin surged from $13,771 to as high as $64,899 on Coinbase.Anatomy of a bullish indicatorDubbed as “rolling basis,” the....
Crypto traders love to “ape” and make “degen” investments using high leverage in futures markets, but most traders fall victim to these three key mistakes. Many traders frequently express some relatively large misconceptions about trading cryptocurrency futures, especially on derivatives exchanges outside the realm of traditional finance. The most common mistakes involve futures markets’ price decoupling, fees and the impact of liquidations on the derivatives instrument.Let’s explore three simple mistakes and misconceptions that traders should avoid when trading crypto futures. Derivatives....