Crypto Trading Expert Tone Vays Says Bitcoin Futures Not Price Spike Cause
Tone Vays Explains Bitcoin Futures Markets Are Not a Reason For The Market To Grow
Tone Vays, an important derivatives trader, analyst and content creator said that Bitcoin futures market are not a reason for its price to increase. He said that on August 28 during an interview with Max Keiser on the Keiser Report.
When the Bitcoin futures were launched, cryptocurrency prices experienced a drop. The same happened with Bitcoin. Mr. Vays was asked whether there was a connection between futures market and the price of Bitcoin. About it he mentioned that they are not linked or connected. The reason for the price of Bitcoin to increase before the launch of the futures market was related to people becoming too optimistic about it.
About it, Mr. Vays mentioned:
“It’s one of those classic buy the rumor sell the news and in this case, it’s more like buy the expected event but then once the event happened people realized that it wasn’t going to have that much of an effect.”
Additionally, Tone explains that Bitcoin futures did not experience an important volume since it was a very niche market. Bitcoin futures do not have an actual Bitcoin settlement, compared to other futures markets such as gold or oil.
Moreover, he was asked about the creation of the Bakkt platform. This will offer a regulated market for Bitcoin in the United States. Bakkt has been presented by the ICE and wants to transform Bitcoin in a trusted global currency.
Until now, regulators haven’t given permission to operate to the new exchange Bakkt. And indeed, according to Tone, it may take some years for its approval.
For him, it will be interesting to see futures that have a deliverable underlying asset. Nonetheless, Bitcoin will still have its actual price from exchanges and not from the futures market.
The futures are just a way for individuals to speculate with the price of an asset, says Tone.
At the moment of writing, Bitcoin is being traded close to $6,900 dollars and has a market capitalization of $118 billion dollars.