Agree with you on correction.. Bitcoin has been almost mechanical on the pull backs to 50% or 68% fib retracements. However, when Bitcoin blew threw all the Short Sellers at $10,000 on GDAX in two days, I knew the institutional investors had finally arrived. On Sunday, I quitely dumped at $9,990 to avoid the in mass sell orders that Monday/Tuesday. I remember 2008 an panic selling. So while I want to dump the rest, thinking they will run this rocket ship through the 12-18 opening of CME futures at least. Remember both CME and CBOE must deliver real bitcoins when contracts expire. So guess it really buying in preparation for futures. Markets in general try to punish the most people, so with 99% of investor being long expect a catastrophic drop at any time. As a retail investor, I can not hedge my bitcoin now, so I am playing it small. When the futures and options are here, will probably split my Gold portfolio to be half Gold - half Bitcoin/Etherium. But I expect to 20% a week on future/options bitcoin trading....
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Interesting opinion, I was under the impression that the CME futures would be settled in cash, did I read that wrong??
Not sure, I trade futures daily. Actually like doing the options on futures contracd on /ES, /RTY,/CL. Got away from trading /GC gold after banksters were caught colluding a few years ago.Going to paper trade the bitcoin stuff through end of year to get the details. if they settle to cash should be easier on CME and CBOE to bring their markets online. CBOE has teamed with the Winklevoss twins who probably own 1% of outstanding bitcoins today. Nevertheless, /Bitcoin should have a calming effect on bitcoin price movement and country arbitrage
Hopefully it can reduce volatility a bit and gives altcoins some room to breathe.
By the way, I've checked the bitcoin contract specs, will be settled in cash:
http://www.cmegroup.com/trading/equity-index/us-index/bitcoin_contract_specifications.html
thanks tradealert, Sunday evening should be pretty exciting from now on...
Indeed :)
BTW.. CBOE will have go into the Bitcoin markets 24x7 to hedge all the short Future contracts they must make a market on. So assume 99% of investors are still long bitcoin and buy the futures. CBOE will all the short Futures contracts since they will be the other side of the trade. So they must go to the markets and winklevoss and buy bitcoins everyday in volume and during off hours which should put positive pricing pressure in real bitcoin market. At least that is what I think for the first week or two. My problems is that I do not want to tie $7-8K margin per contract.
Very interesting, thanks for sharing your thoughts @traderdad