Bitcoin Cash Futures Volumes: A Prelude to the Recent BCH Price Appreciation

Bitcoin Cash Futures Volumes: A Prelude to the Recent BCH Price Appreciation

Over the last few weeks, theres been a lot of attention focused on bitcoin cash (BCH) doubling in value and the $10 million worth of BCH-based futures being swapped on the Crypto Facilities platform every month. Last month, Crypto Facilities saw close to $50 million in BCH contracts. Since then, the popular Huobi exchange has also added BCH future contracts and traders can now take both long and short positions using the Huobi Derivative Market (Huobi DM).

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Huobis Derivative Market Adds Bitcoin Cash Futures Contracts

Interest in BCH derivative products has spiked considerably and bitcoin cash spot prices have been on a tear. On April 11, Huobi added BCH to the firms derivative listings and users can now short or long the decentralized cryptocurrency in order to bolster arbitrage and hedging positions. Huobi DM has done well since launching in Q4 of 2018 by offering weekly, bi-weekly, and quarterly cryptocurrency-based futures contracts. Previously the exchange only offered derivatives contracts for bitcoin core (BTC), ethereum (ETH), eos (EOS), litecoin (LTC), and ripple (XRP).

Huobi DMs BCH futures markets are now live.

For the newly added BCH contracts, Huobi DM will offer a fee structure for BCH at 0.02% to open or close for makers and 0.03% to open or close for takers. Like traditional derivative platforms, the BCH futures will have price, order, and position limits. Moreover, the exchange provides real-time risk supervision, constant monitoring of contract prices, index prices, abnormal transactions, and positions. With our sophisticated price limit mechanism, no clawback has occurred since its launch, Huobi explained during the launch, adding:

Inclusion on Huobi DM means traders will be able to take both long and short positions on BCH, allowing for arbitrage, speculation, and hedging. Since 2017, Bitcoin Cashs value has fluctuated between $75.08 and $4,355.62.

Huobi has joined the BCH futures trend after Crypto Facilities (CF) posted close to $50 million in BCH contracts last month. Further, CF regularly swaps roughly $10 million worth of BCH contracts per month.
Smart Money Moving In

Bitcoin cash futures markets have seen significant growth over the last few months and Crypto Facilities, a subsidiary of Kraken exchange, has been swapping around $10 million worth of BCH contracts per month. During the first week of April, Crypto Facilities executive Sui Chung explained in an interview that BCH contracts in March saw close to $50 million. This week, on the blockchain broadcast, the cofounder of the Affiliate Economy Token project Jason Fernandes explained why he thinks its important to look at the futures market to see where smart money is moving.

Retail investors have always been kind of wild cards sometimes they dont behave rationally and its really a hype-driven cycle, whereas institutional investors are more disciplined and have a strategy in place, Fernandes told the host. So if you were paying attention to the futures markets you would see the recent surge from bitcoin cash (BCH) and litecoin (LTC) wouldnt have been a surprise. Fernandes continued:

In the last 12 months, BCH markets have enticed exchanges into offering BCH derivatives and traders can swap long and short positions on Bitmex, Crypto Facilities, Coinflex and now Huobi. On Bitmex, the BCH derivative allows traders to speculate on the future value of bitcoin cash with bitcoin core (BCH/BTC). Coinflex latest physically delivered cryptocurrency futures exchange provides users with leverage of up to 20x for bitcoin core (BTC), bitcoin cash (BCH), and ethereum (ETH) against the tether stablecoin (USDT). In the last 30 days, BCH has appreciated by +109.48% and is priced at $279 per coin today on April 14. To some spectators like Fernandes, the uptick of BCH contract volumes on derivatives exchanges one month prior to last weeks spike on spot markets was a reliable signal that smart money was moving in.

The post Bitcoin Cash Futures Volumes: A Prelude to the Recent BCH Price Appreciation appeared first on Bitcoin News.

14.04.2019 / 13:10 53
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