Why Bitcoin Futures Will Fuel Ripple’s XRP Price
Since the CME made Bitcoin futures available on December 18th 2017 the price of Bitcoin went downhill. On December 17th 2017 the price of Bitcoin made an intraday high of $19,911. The rest is history.
Since then we have spent a lot of time reflecting on the question how Bitcoin futures exactly will impact the crypto market, in particular cryptocurrency prices. Ripple’s recent breakout was an eye-opener for us, and we believe we have found the answer, finally, which we discuss in detail in this article.
Bitcoin futures: the start of short-selling
Whether there is a direct link between Bitcoin futures and Bitcoin’s price peak is beyond the scope of this article. It may or may not be the case, most likely there is a direct link in our opinion, but, again, not the primary reason we write this article.
With the introduction of Bitcoin futures traders could start short-selling.
Up until that point only ‘physical’ Bitcoin trading was possible. Any sell off was primarily the reason of profit taking. Vicious sell offs in Bitcoin are nothing new, in the early days they were also aggressive. But the market can be actively traded at two sides now, a totally different dynamic.