In today's digital currency market, Bitcoin has always been the focus of much attention. Its price fluctuates frequently, which has aroused widespread attention and speculation. Some people believe that the fluctuation of Bitcoin price is actually making up for the price difference of futures. So, what kind of inside story is hidden behind this statement? Let us uncover the truth about Bitcoin price fluctuations.

Bitcoin price fluctuations seem complicated, but in fact there are rules to follow. From historical data, the sharp fluctuations in Bitcoin prices are often closely related to trading activities in the futures market. The trading of futures contracts can affect the supply and demand relationship in the spot market, and then affect the trend of Bitcoin prices. When there is a price difference in the futures market, investors will conduct arbitrage operations by buying and selling Bitcoin in order to seek profit opportunities, thereby driving the rapid fluctuation of Bitcoin prices.

Not only that, leveraged trading in the futures market is also an important driver of Bitcoin price fluctuations. Leveraged trading can magnify investors' returns, but it also increases risks. When market sentiment fluctuates, investors' leverage operations often exacerbate the fluctuations in Bitcoin prices, and even trigger chain reactions, leading to sharp price fluctuations.

In addition to the impact of the futures market, the fluctuation of Bitcoin prices is also affected by external events. Adjustments to policies and regulations, the spread of market rumors, and the behavior of large exchanges may have a significant impact on Bitcoin prices. In particular, with the intensification of supervision in recent years, policy risks have become one of the important factors affecting Bitcoin price fluctuations.

It is worth mentioning that the speculative atmosphere in the Bitcoin market is also an important reason for price fluctuations. Many investors are optimistic about the long-term potential of Bitcoin, but some speculators are also chasing short-term profits. This speculative behavior will lead to fluctuations in market sentiment, increase price uncertainty, and thus affect the fluctuation of Bitcoin prices.

In summary, the fluctuation of Bitcoin prices is indeed related to the spread of futures, but it is not the only factor. The trading activities in the futures market, leveraged trading, the impact of external events, the adjustment of policies and regulations, and speculative behavior and many other factors work together to promote the fluctuation of Bitcoin prices. In order to better grasp the trend of Bitcoin prices, investors need to comprehensively consider various factors, analyze rationally, and make wise decisions.

In the wave of the digital currency market, Bitcoin is like a dazzling star, and its price fluctuations have attracted the attention and speculation of countless people. The truth behind the futures spread may be just the tip of the iceberg of Bitcoin price fluctuations, and the various factors hidden in it are the real reasons for market fluctuations. For investors, it is necessary to look at the fluctuation of Bitcoin prices rationally and grasp the pulse of the market, so as to ride the wind and waves in the world of digital currency and achieve the goal of wealth growth. I hope that every investor can find his own wealth code and start his own digital currency legend in this digital age.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As long as there is interest, there will be people who manipulate prices. Bitcoin was originally created as a trading tool to get rid of fiat currency, but now it has become a speculative asset. Institutions such as the Chicago Mercantile Exchange (CME), the Chicago Board Options Exchange (CBOE), and Grayscale have developed products based on Bitcoin price changes to serve investors who do not want to take risks.

Among these products, CME Bitcoin futures products are more popular. In the past June, the volume of open contracts hit a record high and the number of new account registrations also surged. According to the latest data, more than 2,960 accounts have traded Bitcoin futures contract products at CME so far. In the first half of 2019 alone, more than 950 accounts were added, and the total customer registration increased by more than 30%.

As shown in the above figure, the open interest of CME Bitcoin futures has been steadily rising, reaching a record high of 6,069 contracts by the end of June 2019, indicating strong market demand.

(Note: Open interest refers to the total number of derivative contracts that have not yet been settled, so it is open).

Bitcoin futures are attractive in their own right, and are also a tool to help traders understand the correlation between Bitcoin spot prices and futures markets. As Gareth MacLeod, partner at Gryphon Labs, an open source framework for algorithmic trading in cryptocurrencies, said, the growth of Bitcoin futures is a sign that the traditional financial industry is beginning to take a greater interest in the crypto industry, and CME Group is creating a forward curve for the cryptocurrency market so that investors can better manage prices. Given the concerns of traditional financial institutions about the high volatility of cryptocurrency prices, futures contracts can better provide stability, reliability and reduce risks when it comes to large portfolios.

Unlike traditional stock markets, Bitcoin and other cryptocurrencies are traded all year round, while CME's Bitcoin futures products are only traded five days a week: starting at 5 pm Central Time on Sundays and ending at 4 pm on Fridays - this is where the problem lies. Due to the time interval between spot and futures trading, price differences will occur, and these price differences need to be "filled" with spot prices.

As shown in the figure above, every time Bitcoin futures trading is suspended, there will be a price gap (marked with circles in the figure above), and these price gaps need to be filled by the spot price (circles of the same color in the figure above fill the corresponding price gaps). Bitcoin trader Joe McCann explained this situation: "Generally speaking, the trading price reflects all the potential price ranges available between buyers and sellers, so that the true value of the asset can be more accurately assessed. This may be a bit difficult to understand. In fact, in many cases, the price gap between futures prices and spot prices will continue to narrow until it gradually disappears (because of short selling), and then rebounds higher. In traditional markets, "trading experts" (humans) will do this deliberately because they usually manipulate market prices for their own interests. As long as the futures price is long enough, the price gap between it and the spot will eventually be filled." As Joe McCann said, as long as there is interest, there will be people to manipulate market prices, and sometimes they are not even willing to wait "long enough" to fill the price gap, which seems to be one of the reasons for the frequent fluctuations in Bitcoin prices. Let's continue to analyze the recent Bitcoin price trend chart above, taking the recent period as an example: the price gap on June 23 was filled on July 2 (two purple circles in the above picture), and the price gap formed on June 29 and 30 was filled on July 4 (two yellow circles in the above picture). Assuming that all price gaps will be filled, the next "available price gap" in the above picture is the price gap of up to $1,000 from $8,500 to $9,500 around June 17. If nothing unexpected happens, this price gap will be filled in the near future - but obviously, no one knows the exact time.