Digital Property Story with DaFIN — Part 7
More attention to Bitcoin value than futures trading day
If you look at the past price trends of Bitcoin during the futures trading period, there is no golden trading rate. The upward, downward, and blockchain technologies have a higher impact on bitcoin prices than on futures closing. Therefore, establishing a trading strategy on the futures deadline is not the right way to trade. In other words, the general theory that bitcoin prices plunge just before the close of the transaction and soar immediately afterwards is just a hypothesis, which occurs when futures trading deadlines and other complex situations overlap. For example, it is not efficient to create a trading strategy with futures deadlines, as futures have a particularly small impact in situations where they are trading rapidly on the support line chart, rising or falling markets. In particular, as Bitcoin continues to renew its high point, it is almost impossible to find a connection to the futures deadline, especially now that the resistance has disappeared. However, one thing to not overlook is that the growing interest in the futures market has become an opportunity to inform the importance of the futures market. It should be noted that the volume of transactions in the futures and over-the-counter markets is becoming similar due to the entry of institutional investors into Bitcoin, which changes prices every second of the day.
In addition, it is worth examining the impact of the non-fluidity of the futures market, suspension of trading, closing time, and other inefficient situations on the market. For example, if we study how BBR’s fixed transactions on CME futures are calculated and what the financial opportunities are, it could help us to come up with the right strategy in the future. The narrowing of the spread between the average bitcoin price and CME futures price on the top 10 exchanges will show whether there is fiscal trading activity, and that’s where we get the signal. The total volume of transactions traded through the over-the-counter market can be seen as a positive sign that the volume of transactions generated by institutions in the virtual asset market is increasing. In recent years, the significant increase in over-the-counter market volume shows that Bitcoin is becoming more valuable as a product considering its utility in rising futures trading prices. The influx of new institutional investors even after the liquidity of bitcoin prices decreased in 2019 supports the rising commodity value of bitcoin.
Bitcoin is now back on track. Even if there is an adjustment during the bull market, it is certain that the trend has changed. At this point, Bitcoin’s commodity value is drawing more attention as a means of storing value. This can be seen as a very stable investment of all investments.