In an interview with CNN Bakkt COO says that that the futures market can assist in predicting the price of Bitcoin,
Bakkt futures debuted yesterday and only 71 contracts were traded. 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 said futures are also likely to predict alterations in the market due to block rewarding halving by next May. So, in essence, look for the front-month pricing at that stage to have a clue on how big of an event the halving will be. Not only is this the case but Deribit options prices and premiums could also help with this conundrum. Right now, the reward stands at 12.5 Bitcoin and is expected to go down to 6.25 Bitcoin by May next year.
Although it has been slow, the Bakkt futures contract represents a massive milestone in the history of cryptocurrencies. If the underlying Bitcoin price gains in popularity once again institutions now have a regulated product to speculate with. CME Group also announced plans for a Bitcoin options product that is due to be released next year.
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