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Does Bitcoin futures have an impact on the comprehensive analysi

Date:2024-07-16 18:12:32 Channel:Wallet Read:

In the current craze of the digital currency market, Bitcoin is undoubtedly the focus of much attention. Whether the rise of Bitcoin futures will have an impact on the Bitcoin spot market has always been a concern. This article will explore the comprehensive analysis of Bitcoin futures on spot from multiple perspectives to reveal the impact and correlation.

The emergence of Bitcoin futures trading has undoubtedly brought a new way of investment to the digital currency market. Investors can make leveraged transactions through futures contracts to gain more profits in market fluctuations. However, will the introduction of this derivative market have an impact on the Bitcoin spot market? We need to analyze this issue from different dimensions.

First, there is a close connection between the trading volume and price fluctuations of Bitcoin futures and the Bitcoin spot market. According to historical data, the price fluctuations of Bitcoin futures often affect the price trend of Bitcoin spot. For example, when the Bitcoin futures market fluctuates sharply, it often leads to follow-up fluctuations in the spot market, and investors' emotions and behaviors will produce a resonance effect between the two markets.

Secondly, the long and short trading strategies in the Bitcoin futures market will also have an impact on the Bitcoin spot market. Long and short trading behaviors will affect the supply and demand relationship of Bitcoin, and then affect the price of the spot market. For example, a large number of short-selling transactions may cause the price of Bitcoin spot market to fall, while long-selling transactions will drive the price up. The transmission effect of this market psychology cannot be ignored.

In addition, the regulatory policies and market risks of the Bitcoin futures market will also directly affect the stability of the Bitcoin spot market. Once the futures market experiences abnormal fluctuations or regulatory policy adjustments, it may trigger a chain reaction in the spot market. Investors' confidence and risk appetite in the futures market will also affect the investment sentiment in the spot market, and then affect the overall operation of the market.

In summary, there is a complex and subtle relationship between Bitcoin futures and the spot market. The volatility, trading strategies and regulatory policies of the futures market will directly affect the operation of the spot market. Investors need to comprehensively consider the mutual influence between the two markets and make rational investment decisions. In the ever-changing digital currency market, keep a cool head and grasp the pulse of the market in order to move forward steadily. The interweaving of Bitcoin futures and the spot market is not only a phenomenon in the digital currency market, but also a microcosm of market evolution and investor behavior.

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Before answering this question, the editor of Coin Circle would like to talk to you about what Bitcoin futures and Bitcoin spot mean? Bitcoin futures are an agreement (contract) that promises to deliver "goods" (subject matter) at a certain time in the future - futures contracts. Bitcoin spot is a real commodity that can be delivered in exchange for money, and this commodity refers to Bitcoin. After understanding the meaning of Bitcoin futures to spot, let's return to the topic. Does Bitcoin futures have an impact on spot? Below, the editor of Coin Circle will give you a comprehensive analysis of whether Bitcoin futures have an impact on spot.

 Comprehensive analysis of whether Bitcoin futures have an impact on spot?

Bitcoin futures have an impact on spot. Since Bitcoin futures have the functions of value discovery and hedging, when approaching the contract date, the futures and spot prices will tend to be consistent. The futures price drives the trend of the spot price, and the arbitrage space gradually narrows. On the one hand, many miners will hedge in the futures market in order to ensure their own profits. On the other hand, some speculators will increase the liquidity of the futures market through a large number of long or short orders in order to lower or raise the price of the currency, which will lead the price trend of the spot market.

 Difference between Bitcoin futures and spot:

1. Different properties

Bitcoin spot trading, generally speaking, when newcomers in the currency circle buy and sell digital currencies, the first transaction is almost always carried out. Generally, USDT is exchanged, the currency to be purchased is selected, such as Bitcoin, and then it is purchased at the "market price" or "limit price". After the purchase, the Bitcoin will be credited to the account in about a few seconds. This method is to buy Bitcoin immediately at the real-time trading price of the market. This trading method is called "spot trading", which simply means buying and selling on the spot with one hand for money and one hand for delivery.

Futures are opposite to spot. Spot is a real commodity that can be delivered with one hand for money, while futures are not "goods", but an agreement (contract) to promise to deliver "goods" (subject matter) at a future time - futures contract. Bitcoin futures are usually standardized contracts with Bitcoin price index (such as BraveNewCoin Global Bitcoin/US Dollar Price Index adopted by 796 Exchange) as the subject matter, and the Bitcoin futures provided are usually traded in Bitcoin.

2. Different margin ratios

The margin ratio in the futures market is around 5%-10%, which is relatively low and has a large leverage, which also amplifies the risks and benefits of investment. The margin in the spot market is usually around 20%. Special circumstances (continuous price limits, near delivery, etc.) will increase the margin, with moderate leverage and moderate risk.

3. Different trading hours

Bitcoin spot generally has 724 hours trading, while Bitcoin futures have fixed trading hours.

4. Different price limits

Bitcoin futures have price limits, but Bitcoin spot does not.

5. Trading objects

The objects of Bitcoin spot trading are mainly physical commodities, while the objects of Bitcoin futures trading are standardized contracts. In this sense, futures are not goods, but contracts about certain commodities.

6. Trading purpose

The purpose of Bitcoin spot trading is to obtain or transfer the ownership of Bitcoin, which is a direct means to meet the needs of both buyers and sellers.

The purpose of Bitcoin futures trading is generally not to obtain physical Bitcoin. The purpose of hedgers is to transfer the price risk of the spot market through Bitcoin futures trading, and the purpose of speculators is to obtain risk profits from the price fluctuations in the futures market.

7. Settlement method

Bitcoin spot trading mainly adopts the settlement method of one-time settlement upon maturity, and there are also cash on delivery and installment payment methods in credit transactions.

Bitcoin futures trading implements a same-day non-liability settlement system. Both parties to the transaction must pay a certain amount of margin and always maintain a certain margin level during the transaction.

Through the above introduction, I believe that everyone has an understanding of the impact of Bitcoin futures on spot. As we all know, hackers are always coveting the passwords of investors to save their Bitcoin accounts. Therefore, investors should be careful to prevent it. It is best to set a complex password with a high security factor. If you are afraid of forgetting, it is best to make more backups. After all, whether it is stolen by hackers or forgotten passwords, Bitcoin will be unable to be retrieved. If you want to know more about related issues, you can pay attention to the currency circle. The editor of the currency circle will continue to update related reports in the future!

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