Futures Can Assist In Predicting Bitcoin Prices, Claims Bakkt COO
Bakkt chief operations officer, Adam White says that the futures market can assist in predicting the price of Bitcoin, reports Cointelegraph.
In an interview with CNN, White revealed that the freshly introduced Bakkt futures contracts will assist in valuing Bitcoin. According to White, the daily and monthly futures contracts will help in price discovery.
The new Bakkt futures started trading last weekend where 71 contracts were traded during its debut day. White explained his point:
“We think this is an important part of the futures contract — to help businesses discover what the fair market value of Bitcoin is going to be through events like this.”
White stated that futures are also likely to predict alterations in the market due to block rewarding halving by next May.
The halving of block reward can be described as the drop that occurs after every four years in the reward given to miners after validation of a Bitcoin block transactions. At the moment, the reward stands at 12.5 Bitcoin and is expected to go down to 6.25 Bitcoin by May next year.
It is expected that following the halving, Bitcoin’s value will dramatically rise. According to Cointelegraph, after the halving in 2016, Bitcoin’s price rose dramatically leading the famous price tag of about $20,000.
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