Popular cryptocurrency analyst Willy Wu said that the price of bitcoin is being significantly pressured by futures on the CME exchange, and this is, to a large extent, political pressure.
In a large-scale discussion that unfolded on the social network Twitter, Willy Woo recalled that the BitMEX platform initially offered bitcoin futures. A feature of this product is the ability to trade with leverage. That is, the owner of 1 BTC can place a position on futures for 10 BTC. But when bitcoin futures paired with USD appeared on the CME exchange, large players were able to exert a significant influence on the bitcoin price.
“I will tell you how to sell 42 million BTC. You will say that this is nonsense, because the maximum bitcoin is limited to 21 million coins? But today’s financial markets don’t care. It’s just a casino. On BitMEX, at least, there was some limitation – there you had to own a certain amount of bitcoins. But when it comes to CME, things change. The capitalization of bitcoin is $0.37 trillion. The capitalization of the USD is $22 trillion, and over the past year $1.1 trillion have been printed, but in general they can be printed as much as they like. Therefore, hedge funds can short bitcoin indefinitely. And you don’t need to kill bitcoin, just keep its price, because without a large capitalization, BTC will not be able to influence the world. And here we see the work of the SEC, which approves cryptocurrency futures ETFs, but prohibits the launch of spot funds. This is all a political game,” wrote the analyst.
At the beginning of the year, Willy Wu already noted the impact of bitcoin futures trading on the price of the first cryptocurrency.
Source: Bits
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