Futures bitcoin not affect the price of BTC, this is the opinion of the Creator of one of the most accurate cryptocurrency price patterns.
On April 7 in a series of tweets PlanB, a well-known analyst who created the model of “market flow” (stock-to-flow), argued that the futures have not produced a chaotic effect on the price of bitcoin.
PlanB: “Nothing ordinary” in the bitcoin price following the release of futures
According developed by PlanB, stock flow (stock-to-flow), bitcoin worked as expected, even after the first futures market hit in December 2017.
Futures bitcoin, the industry, the market capitalization which now has hundreds of millions of dollars, raised concerns last year, when some commentators noticed that the start date of the futures coincide with the fall in the exchange rate BTC/USD.
“In my opinion, the price of bitcoin is not manipulated by the futures,” said PlanB.
“CME launched futures on BTC in December 2017. Some point of all time highs in December 2017, as proof that futures have reduced prices. But the price of BTC remained perfectly within ranges S2F. I would expect that this will happen with the futures with or without them. Nothing is normal “.
The price chart of bitcoin – exchange flow, as of 7 April. Source: PlanB / Twitter
Graphics exchange flow of past and future prices of bitcoin is based on the interaction between the “new” bitcoins issued by miners, and the existing bitcoins in circulation. This model has proven to be extremely effective, despite the constant criticism from industry representatives.
Last week, a Twitter user known as J0e007, a large trader on the stock exchange Bitfinex, has described those who use the model exchange flow “thousands of dolls”.
Continuing, PlanB suggested that even the growth of bitcoin to its historic highs of $20 000 a bear market, which followed thereafter, was triggered by the futures.
“In October 2017 BTC was at the current level of $7,000 and the launch of futures gave hope to a huge institutional demand, and the price of BTC has jumped nearly threefold to $20,000 in December of 2017”, – stated in another publication.
“Institutions did not come, and prices slipped to their previous values $7000 and are on the same level for 2.5 years”.