1. Same story, different day...........year ie more of the same fiat floods the world
    Dismiss Notice
  2. There are no markets
    Dismiss Notice
  3. Week of 6/24/2017 Closing prices & Chg Over Last Wk---- Gold $1256.40 Silver $16.64 Oil $43.01 USD $96.94
  4. "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"
    Dismiss Notice

Was Bitcoin’s tumultuous volatility over past two days a prelude to when the CME starts futures cont

Discussion in 'Digital Currencies' started by Goldhedge, Dec 8, 2017.



  1. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

    Joined:
    Mar 28, 2010
    Messages:
    29,148
    Likes Received:
    33,756
    Trophy Points:
    113
    Occupation:
    Retired
    Location:
    Planet Earth
    GLD and SLV redux...


    Was Bitcoin’s tumultuous volatility over past two days a prelude to when the CME starts their futures contracts next week?

    December 8, 2017

    December 11 is expected to be a red letter day in the story of Bitcoin as the Chicago Mercantile Exchange (CME) is set to begin selling paper futures contracts for the cryptocurrency. In the meantime however, the market is suddenly wondering how this will truly affect the decentralized digital currency if the past two days of trading on their primary exchanges is any indication.

    Not since the the slew of market flash crashes from four to five years ago have we seen a security trade in as big a range, and over a shorter period of time, than we saw in Bitcoin between Wednesday and Friday.

    [​IMG]

    After an utterly shocking day yesterday with Bitcoin prices soaring towards $20,000 intraday on some exchanges, the true chaos of the cryptocurrency is unveiled ahead of Monday’s futures launch.

    GDAX shows bitcoin trading up to $19,697 yesterday before plunging to $13,788 and then rebounding…

    GDAX is flashing $15,500, BitStamp is signaling a plunge to $14,500, and Bloomberg’s aggregate price is around $15,000 – all of which are well down from yesterday’s GDAX-based $19,600 record highs as all the fears of margin clerks were realized amid yesterday’s chaotic run. – Zerohedge

    When the CME starts trading their new contracts on Monday, the real question that will emerge is whether the CME can eventually take over the pricing of Bitcoin through their paper contracts the same way they do with nearly every other commodity traded in a market. Because the primary significance is that the big money that will be coming into Bitcoin will not be through buying the cryptocurrency itself, but through the paper markets which cater to large institutions, mutual funds, retirement accounts, and pension funds.

    The prime players outside of Wall Street are predicting that the new futures contracts will have little bearing on the Bitcoin market, and that they will end up doing more harm for investors of these securities than the likelihood of them eventually coming to control the cryptocurrency itself. But as we noted above in the tumultuous volatility that has already taken place before these contracts begin trading next week, it appears likely that they will have some significant effects on the price action of Bitcoin, with the other major question being as to whether the result will be positive or negative for Bitcoin owners.

    Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.com, Roguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.

    http://viralliberty.com/bitcoins-tu...elude-cme-starts-futures-contracts-next-week/
     
    Thecrensh likes this.
  2. anywoundedduck

    anywoundedduck Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    2,484
    Likes Received:
    2,527
    Trophy Points:
    113
    Occupation:
    Data Architect, Systems Engineer, Business Owner,
    Location:
    Kentucky
    So when the banksters go naked short Bitcoin by 6 months of mining, it won't affect the price, anymore than silver is affected.
     
  3. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    It appears that 100% of CME bitcoin contracts could potentially be "naked". Straight from the fraudster's horse's mouth.
    http://www.cmegroup.com/media-room/...elf-certifiesbitcoinfuturestolaunchdec18.html

    Why anyone would choose to conduct trade on a commodities exchange that doesn't deal in commodities is beyond me, but sadly, people don't always do what's in their best interest. Working in bitcoin's favor are the facts that it's already electronic and it's a currency. Hopefully these factors will limit volume in CME's scam product, but as goobermint makes it moar and moar difficult to exchange cash for bitcoin...some people will be swayed. If/when bitcoin price is eventually determined by fake commodity contracts then yes, it will be in the same boat as PMs.
     
    oldgaranddad likes this.
  4. D-FENZ

    D-FENZ Gold Member Gold Chaser Site Supporter ++

    Joined:
    Jan 24, 2011
    Messages:
    1,544
    Likes Received:
    3,139
    Trophy Points:
    113
    In order for bitcoin to go mainstream and be generally accepted as a currency, the volatility needs to go away. Trading bitcoin on a futures exchange will smooth that by facilitating hedges against that risk.

    And a liquid futures market will not function without the speculators and -yes ~gasp~ the naked shorts.
     
    madhu likes this.
  5. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    Sweet. Maybe the price of bitcoin will one day be as "stable" as silver. lol

    To be clear, I don't have a problem with futures, contracts, options, or shorts. I have an issue with the price of an underlying asset being derived from a fictional derivative. The price of any asset should be determined by people buying and selling that asset, not people buying and selling a bankster conjured fraud.

    ...and naked shorts are just fraud. Plain and simple. You cannot sell something you don't own...well unless you're a bankster. ...a "market maker".
     
    Last edited: Dec 9, 2017
  6. anywoundedduck

    anywoundedduck Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    2,484
    Likes Received:
    2,527
    Trophy Points:
    113
    Occupation:
    Data Architect, Systems Engineer, Business Owner,
    Location:
    Kentucky
    There, I fixed it for you.
     
  7. southfork

    southfork Mother Lode Found Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    14,087
    Likes Received:
    12,048
    Trophy Points:
    113
    CME will sell 100 bit coin for every one in existence, wam bam pow, btc is gone just like that, poof
     
  8. anywoundedduck

    anywoundedduck Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    2,484
    Likes Received:
    2,527
    Trophy Points:
    113
    Occupation:
    Data Architect, Systems Engineer, Business Owner,
    Location:
    Kentucky
    Well, yeah.
    That is the idea. Rather than outlawing Cryptos, short em to death. FRNs king again. No worries.
     
  9. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

    Joined:
    Jan 7, 2011
    Messages:
    11,747
    Likes Received:
    9,502
    Trophy Points:
    113
    Location:
    Florida
    It's gambling worse that trying to beat the spread in lady's badminton.
     
  10. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    They needn't limit their leverage to 100:1. They've already said they'll settle in cash, so they don't have to link buyers & sellers of bitcoin, they just have to link buyers and sellers of bitcoin futures(bets). Unlike the PM markets at the crimex they don't have to have any bitcoin at all. Now while people betting back and forth on the price of bitcoin is fine, the real danger is that those bets will become the benchmark standard used to determine the price of the actual asset...in this case bitcoin.

    Then you'd end up with a situation at least as absurd as the one in the PM "markets" where a tiny amount of physical metal underpins billions of dollars in derivative fictions changing hands and the price discovery mechanism is completely disconnected from supply and demand.
     
    Son of Gloin, madhu and spinalcracker like this.
  11. anywoundedduck

    anywoundedduck Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    2,484
    Likes Received:
    2,527
    Trophy Points:
    113
    Occupation:
    Data Architect, Systems Engineer, Business Owner,
    Location:
    Kentucky
    The CME will find a way. There are Programs in place to knock the shit out of any and all commodities listed, including Bitcoin. You don't bet against a fair market. You are betting against the house.
     
    nowon and GOLDZILLA like this.
  12. spinalcracker

    spinalcracker On a mail train. Silver Miner Site Supporter

    Joined:
    Apr 1, 2010
    Messages:
    698
    Likes Received:
    1,664
    Trophy Points:
    93
    Gender:
    Male
    Occupation:
    CEMENT MASON LOCAL 690
    Location:
    On a mail train.
    Thoughts from a couple of crypto billionaires......

    Business News
    New bitcoin billionaire Winklevoss sees cryptocurrencies heading much higher
    Published: 9 Dec 2017 | 11:36 GMT
    New bitcoin billionaire Winklevoss sees cryptocurrencies heading much higher
    Cryptocurrency investor Cameron Winklevoss sees bitcoin becoming a multitrillion-dollar asset. Winklevoss and his brother Tyler once sued Mark Zuckerberg in an attempt to gain control of Facebook, and then invested their settlement in bitcoin.

    Read more
    Cameron Winklevoss (L) and his brother Tyler Winklevoss © Andrew Burton / Getty Images North AmericaZuckerberg’s twin rivals become 1st bitcoin billionaires
    “We’ve always felt that bitcoin, given its properties, is gold 2.0 — it disrupts gold. Gold is scarce, bitcoin is actually fixed. Bitcoin is way more portable and way more divisible. At a $300 billion market cap, it's certainly seen a lot of price appreciation, but gold is at $6 trillion and if bitcoin disrupting gold is true and it plays out... then you can see 10 to 20 times appreciation because there is a significant delta still,” Cameron Winklevoss told CNBC on Friday.

    “Long term, directionally, it is a multitrillion-dollar asset — I don’t know how long it takes to get there,” he added. Winklevoss disputed suggestions by some analysts that the rapid rise of cryptocurrencies in recent months is a massive bubble.

    “We’ve seen the bubble term thrown around and it’s just not the right way to look at this,” he explained. “Social networks grow in value exponentially based on the number of users and participants. The difference between one and 100 is dramatic — 100 and a million is that much more dramatic and exciting. As more people join it gains more value.”

    When asked whether people should invest in something they do not understand, Winklevoss said that it is not a problem. “Most people don’t know how the internet works but they are comfortable using it,” he pointed out.

    In 2008, Tyler and Cameron Winklevoss famously settled with Facebook founder Mark Zuckerberg over the claim that he stole their idea for the Facebook social network. The brothers used their payout to invest in bitcoin and recently made headlines by becoming the world’s first bitcoin billionaires.
     
    madhu likes this.
  13. #48Fan

    #48Fan Silver Member Silver Miner

    Joined:
    Mar 14, 2014
    Messages:
    455
    Likes Received:
    333
    Trophy Points:
    63
    I don't think the futures market will have much effect on BTC, other than several newly poor banksters.
     
  14. Buck

    Buck Gold Member Gold Chaser

    Joined:
    Apr 13, 2011
    Messages:
    2,671
    Likes Received:
    2,102
    Trophy Points:
    113
    Gender:
    Male
    A Derivative of Nothing gains the notoriety while the Real Nothing just goes along for the ride
    One will be made inflationary while the other is deflationary by design
    Both require fees to obtain / use

    And neither are backed by anything, it's nothing

    and they both have value and no one knows why but there are opinions galore, including mine LOL



    Gotta love those Bankers and Investment Houses

    Makes no sense to me so, I'm out
     
    madhu likes this.
  15. anywoundedduck

    anywoundedduck Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    2,484
    Likes Received:
    2,527
    Trophy Points:
    113
    Occupation:
    Data Architect, Systems Engineer, Business Owner,
    Location:
    Kentucky
    What? Are you serious?
    When JPM dumps half the known Bitcoin in 5 Seconds, that will not affect Bitcoin?
    Are you serious?
     
  16. #48Fan

    #48Fan Silver Member Silver Miner

    Joined:
    Mar 14, 2014
    Messages:
    455
    Likes Received:
    333
    Trophy Points:
    63
    How, exactly, are they going to do this as they will not be buying/trading a single bitcoin?
     
  17. Thecrensh

    Thecrensh Gold Member Gold Chaser

    Joined:
    Jun 26, 2013
    Messages:
    3,039
    Likes Received:
    2,892
    Trophy Points:
    113
    So instead of having an electronic "wallet", the Federal Reserve will now hold a stockpile of wallets and issue paper certificates indicating that the owner of said paper certificate is payable on demand the value shown on the certificate. Got it. Seems like a great system that will never fail.
     
  18. #48Fan

    #48Fan Silver Member Silver Miner

    Joined:
    Mar 14, 2014
    Messages:
    455
    Likes Received:
    333
    Trophy Points:
    63
    Actually, the way I understand it, is that they will not be holding any actual Bitcoin. It is going to be a 100% paper "futures" market. I say, good luck with that.
     
    Thecrensh likes this.
  19. Thecrensh

    Thecrensh Gold Member Gold Chaser

    Joined:
    Jun 26, 2013
    Messages:
    3,039
    Likes Received:
    2,892
    Trophy Points:
    113
    Sorry...my post was meant to be sarcastic, but that obviously didn't come across. The Fed holding the bitcoin was a shot at our current system of Fiat currency...
     
  20. #48Fan

    #48Fan Silver Member Silver Miner

    Joined:
    Mar 14, 2014
    Messages:
    455
    Likes Received:
    333
    Trophy Points:
    63
    Ah, gotcha!
     
  21. madhu

    madhu Silver Member Silver Miner

    Joined:
    Apr 2, 2010
    Messages:
    819
    Likes Received:
    455
    Trophy Points:
    63
    Got to make profit for their shareholders AKA, Their masters. Whatever they buy it at the wholesale price and then dump at manipulated market values, usually insanely higher than what they purchased it for.

    Yes that is the intent. Market makers have to make money matching buyers with sellers. When the demand is huge than the underlying asset, only fictional paper contracts can satisfy the inflationary demand? The actual asset will be steadily forked out till there is no silver left in the denarius coin. A jack ass can never become a horse! The crimex are good at making the best of horses into the dumbest ass.
     
  22. D-FENZ

    D-FENZ Gold Member Gold Chaser Site Supporter ++

    Joined:
    Jan 24, 2011
    Messages:
    1,544
    Likes Received:
    3,139
    Trophy Points:
    113
    My guess is that Bitcoin will likely pull back seriously when it starts trading on the CME. Before I try to explain my reasoning, let me remind you that when the first silver ETF began trading it was fuel for the last bull run up to $50, so a dive is not axiomatic.

    Bitcoin, with only a few fits and starts has had a huge run up. With a continued bull market, no one wants to sell because they figure that the upward momentum will most likely continue. Why sell today when it will double in a month? But because there are no sellers (currently impossible to short) it just continues skyward. A classic self-reinforcing feedback loop (btw it's also one reason why it would not make a very good currency- no one wants to spend it). Trading this thing on the commodity futures marked will make it much easier to trade quickly with excellent liquidity- for both buyers and sellers. Sooner or later it will find the right price, but prepare for a correction right out of the gate. There is huge pent up demand to short this thing. But that's what makes a market.

    I've been wrong before but it's my two cents.

    I'll let myself out now.
     
    Uglytruth, Son of Gloin and Usury like this.
  23. Usury

    Usury Gold Chaser Platinum Bling

    Joined:
    Apr 1, 2010
    Messages:
    3,987
    Likes Received:
    3,086
    Trophy Points:
    113
    Well that explains that. I was wondering what would happen if a contract buyer elected to take possession of the commodity at settlement. Guess that's not an "option". Haha...I kill me.

    Seriously though I was kinda half wondering if the futures wasn't a ruse to eliminate BTC from the system. Seeing as there's a finite amount, the big banisters could just take settlement on them all and pull all the actual BTC out of circulation. VOILA! Dollar challenge eliminated. Of course then they'd have to use their own "money". I guess it's easier to just make it worthless and affect others.

    I do think the whole concept of BTC having any value is a bit ridiculous. At least with the tulip bulb mania in 1600's, the poor fools ending up with $15k tulip plants. The fools in the BTC mania will end up with a bit of software code that is completely pointless and useless.
     
  24. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    Negative. Bitcoin shorts have been available for a long time. Gdax & Kraken for sure, and I believe Bitfinex, but I haven't had anything to do with Bitfinex since they robbed themselves. Even saying "bitcoin will trade on the CME" seems like a misnomer as they won't be dealing with bitcoin at all. They're basically creating a betting pool where you can wager on the future price of bitcoin...nothing more.

    There's absolutely nothing wrong with shorts...as long as they're covered.

    I don't follow the bitcoin is "nothing" logic. As a currency it seems every bit as valid as commodity money to me, but with properties that make it better suited for remote transactions.
     
    Last edited: Dec 10, 2017
    Joe King likes this.
  25. Joe King

    Joe King Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    5,159
    Likes Received:
    4,853
    Trophy Points:
    113
    Location:
    Instant Gratification Land
    Isn't this just the first day?
    ....and already halting trading twice? lol




    Bitcoin Futures Started So Hot That Trading Had to Be Halted Twice


    Futures on the world’s most popular cryptocurrency surged as much as 26 percent in their debut session on Cboe Global Markets Inc.’s exchange, triggering two temporary trading halts designed to calm the market. Initial volume exceeded dealers’ expectations, while traffic on Cboe’s website was so heavy that it caused delays and temporary outages. The website’s problems had no impact on trading systems, Cboe said. Bitcoin’s spot price rose.

    “It is rare that you see something more volatile than bitcoin, but we found it: bitcoin futures,” said Zennon Kapron, managing director of Shanghai-based consulting firm Kapronasia.

    The launch of futures on a regulated exchange is a watershed for bitcoin, whose surge this year has captivated everyone from mom-and-pop speculators to Wall Street trading firms. The Cboe contracts, soon to be followed by similar offerings from CME Group Inc. and Nasdaq Inc., should make it easier for mainstream investors to bet on the cryptocurrency’s rise or fall.



     
  26. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    Mark my words, these fraudsters will try to transform their fictional "BRR" or Bitcoin Reference Rate into "the price" of bitcoin. Nevermind that they're not dealing in bitcoin...nevermind that all you're doing is placing a bet on what the price will be at some point in the future, people will be duped into accepting the price of those bets as "the price" of a bitcoin.
     
  27. #48Fan

    #48Fan Silver Member Silver Miner

    Joined:
    Mar 14, 2014
    Messages:
    455
    Likes Received:
    333
    Trophy Points:
    63
    Yep, you're prolly right, Solarion.
     
  28. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

    Joined:
    Mar 28, 2010
    Messages:
    29,148
    Likes Received:
    33,756
    Trophy Points:
    113
    Occupation:
    Retired
    Location:
    Planet Earth
    I hear you can now 'rent' your bit coin...


    fast fwd to the 27 min mark and give a hard listen... she makes sense!!

     
    madhu and solarion like this.
  29. Joe King

    Joe King Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    5,159
    Likes Received:
    4,853
    Trophy Points:
    113
    Location:
    Instant Gratification Land
    If they do that, what keeps those actually dealing in btc from simply switching to a different coin?

    Wouldn't that leave the btc futures market in the lurch?
     
    Usury likes this.
  30. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    I like CAF, she's a bright gal. The "psyop" accusations have been around as long as bitcoin has been around. Could be, never seen any proof and it wouldn't matter anyway. All we peasants are allowed to use is fiat or bitcoin and bitcoin is plainly superior to fiat.

    One issue with her assertions is that she says cryptos are sucking funds away from PMs, but that of course ignores the fact that gold's all time high was reached in 2011...and bitcoin was right there. Bitcoin didn't smash gold back down to $1100 or silver to under $16.
    Nothing. However btc's crypto marketplace dominance is built around it's widespread acceptance. If people swap to another crypto to avoid bankster scams then they'll also be limiting their new currency's usability.
     
  31. Joe King

    Joe King Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    5,159
    Likes Received:
    4,853
    Trophy Points:
    113
    Location:
    Instant Gratification Land
    At first, but if say ltc became the preferred coin, wouldn't it gain in usability the same as btc did? I mean, we always speak of the possibility of another coin eventually supplanting btc, could the big boys trying to control btc become a catalyst for that to happen?
     
  32. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    Could be, but then there are a lot of people with a lot invested in bitcoin infrastructure. Those two coins, for instance, have different algorithms at their core...bitcoin being sha256 and litecoin being scrypt so the bitcoin guys with hundreds of thousands or perhaps millions sunk into sha256 gear would fight tooth and nail against a takeover by litecoin or ethereum(scrypt). Those guys would instead try steering the market toward something like bitcoin cash(sha256).

    Then of course you have people's basic ignorance to contend with. I mean why buy a futures contract that has 100% cash settlement guaranteed at all? Why not just buy bitcoin and secure it in your own wallet? Leverage isn't an answer because you can get that at an exchange. Shorts aren't an answer because you can get that at a real bitcoin exchange as well.
     
  33. Joe King

    Joe King Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    5,159
    Likes Received:
    4,853
    Trophy Points:
    113
    Location:
    Instant Gratification Land
    Or bitcoin cash. I was just using ltc as an example.


    Yep, which makes me question the need of a futures exchange. Just buy/sell the f'ing coins and be done with it. This whole wanting to bet on the price by pretending to buy/sell btc seems kinda stupid imho.
     
    Uglytruth and solarion like this.
  34. Usury

    Usury Gold Chaser Platinum Bling

    Joined:
    Apr 1, 2010
    Messages:
    3,987
    Likes Received:
    3,086
    Trophy Points:
    113
    BTC superior to fiat? Whaaaat??? Did yo mama drop you on your head? lol. Seriously though I can at least hold fiat in my hand and trade with it without power or in spite of an EMP. Everyone recognizes it and accepts it all over the world. The only thing I’d prefer more is gold.
     
  35. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

    Joined:
    Mar 28, 2010
    Messages:
    29,148
    Likes Received:
    33,756
    Trophy Points:
    113
    Occupation:
    Retired
    Location:
    Planet Earth
    Bitcoin Futures Top $18,000, Soar 20% From Open - Halted for Second Time

    Update: At 10:05pm ET, the CFE halted trading in Cboe Bitcoin Futures (XBT), in accordance with CFE Rule 1302(i)(ii) which defines the threshold for the halt as a 20% surge. XBT will re-open for trading approximately five (5)minutes from the time of the halt.

    Bitcoin Futures have topped $18,000 for the first time...

    [​IMG]

    It was reopened at 10:10pm ET.

    All of which is odd because Bob Pisani and the rest of the mainstream said that the opening of Bitcoin Futures would bring about the demise of the cryptocurrency due to the ability to short?

    * * *

    Update: At precisely 8:31pm ET, the CBOE instituted the first ever XBT trading halt, which lasted for two minutes according to a notice on Cboe’s website. XBT contracts have since resumed trading. As a reminder, the Cboe can halt trading for 2 minutes after 10% swings, and 5 minutes at 20%, an attempt to prevent wild swings.

    [​IMG]

    Notably earlier in the evenig they exercised discretion and decided nto to halt the XBT trading as the first opening spike occurred...

    [​IMG]

    * * *

    The CBOE’s website crashed within minutes of the CBOE open on Sunday – which also marked the launch of the first bitcoin futures to trade on a major exchange...

    ... while the price of a bitcoin spiked 10% in five minutes as the new contract with the ticker XBT fluctuated wildly.

    [​IMG]

    The embarrassing crash happened as the entire financial world was closely watching the first historic institutionalization of bitcoin:

    Shortly after the initial snafu, the CBOE tweeted that "visitors to cboe.com may find site is performing slower than usual and may at times be temporarily unavailable" due to heavy traffic adding that "all trading systems are operating normally."

    "Given the unprecedented interest in Bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure," said Ed Tilly, chairman and CEO of CBOE Global Markets, in a statement earlier this month. Trading in Bitcoin futures will be free through the end of December.

    Despite the surging interest in what was taking place on the CBOE, a little over an hour after the launch, some 555 XBT jan 2018 futures contracts had traded - equivalent of roughly $9 million notional...

    [​IMG]

    ... and while futures market depth was virtually non-existant in early trading, the bid/ask spread in the orderbook has since shrunk as depth increased, and is now "only" $50.

    [​IMG]

    Indeed, as the tradestation tick chart below shows, as we expected, today's launch is hardly euphoria bonanza some had expected.

    [​IMG]

    Going further out on the curve, just one March 2018 contract has traded one hour into trading.

    [​IMG]

    What is also notable, is that while at least in early trading, bitcoin futures appeared to be trading with a premium as much as $400 above cash, according to Jared Bilkre, the XBT future was trading around fair value, defined by the Gemini auction price for bitcoin off which the futures are priced.

    [​IMG]

    Still, it remains to be seen if the futures and spot prices will converge, with the spread still will in the hundreds of dollars while volatility refuses to ease.

    [​IMG]

    As a reminder, the CBOE plans to impose trading limits to curb volatility, halting trading for two minutes if prices rise or fall 10%, and a five-minute halt kicks in at 20%. Margins for Cboe bitcoin futures, which will be cleared by Options Clearing Corp., will be at 40% or higher.

    So far there have been no futures trading halts.

    Meanwhile, the price of spot Bitcoin surged immediately after the 6 p.m. open, climbing about 10%, or $1,500 on GDAX to over $16,200, before giving back much of the early gains...

    [​IMG]

    ... as the excitement over this historic moment slowly fades away.



    And while for at least one person today's first day of trading will never be forgotten, the first documented trade appears to have been a short.

    http://www.zerohedge.com/news/2017-...ading-begins-bitcoin-price-squeezed-10-higher
     
  36. Joe King

    Joe King Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    5,159
    Likes Received:
    4,853
    Trophy Points:
    113
    Location:
    Instant Gratification Land
    @goldielox1 , was that you?

     
  37. solarion

    solarion Gold Member Gold Chaser Site Supporter

    Joined:
    Nov 25, 2013
    Messages:
    4,831
    Likes Received:
    7,191
    Trophy Points:
    113
    Several times I've been told. :bombs 7:
    Here "fiat" = FRNs, though obviously FRNs are only a tiny portion of the "dollars" that exist. Cash works just fine as a currency, but I'm sure we can both agree that storing your wealth in it is kind of silly. ...I mean the stuff melts over time and does so by design. Plus if this debt dollar fiat scam is to continue than physical FRNs will have to, at some point, be eliminated. Clearly you cannot have negative rates for long while still having an escape route.

    Yeah, gold is great, which is probably why banksters store so much of it while systematically smashing the crap out of it and calling it a barbaric relic. They know gold is money, but they don't want the little people to know that.
     
  38. Uglytruth

    Uglytruth Gold Member Gold Chaser

    Joined:
    Apr 6, 2011
    Messages:
    4,195
    Likes Received:
    5,241
    Trophy Points:
    113
    "She said "Turning your money off unless you behave".

    Turn in your guns or we will turn off your money.
    Buy a new electric car or we turn off your money.
    Buy obamcare or we turn off your money.
    Your overweight so you can't buy certain groceries.
    Quit smoking or you won't be able to buy cigs.
    Have a DUI & you can't buy hooch.

    The control possibilities are endless............
     
    Son of Gloin, Usury and BigJim#1-8 like this.
  39. Joe King

    Joe King Gold Member Gold Chaser

    Joined:
    Mar 31, 2010
    Messages:
    5,159
    Likes Received:
    4,853
    Trophy Points:
    113
    Location:
    Instant Gratification Land
    BTC would make a nice escape route in such a situation.

    Lessee, I can put my money in the bank and pay them 5% to do so, or I can put it into BTC and watch it grow by 5% each day.
    Hmmm. Really tough choice there.
     
    solarion and #48Fan like this.
  40. Usury

    Usury Gold Chaser Platinum Bling

    Joined:
    Apr 1, 2010
    Messages:
    3,987
    Likes Received:
    3,086
    Trophy Points:
    113
    You need a new bank.
     

Share This Page