On January 26, The Chicago Mercantile Exchange's first batch of Bitcoin Futures expire...
A few days ago, Bitcoin's price went into the basement, briefly dipping below $10K USD before recovering dramatically.
Although there were a number of factors at play causing this crash, you can not overlook the fact that short-selling Bitcoin futures on the CBOE expired the day following this huge crash, and before most of the recovery took place.
On January 26, the CME, a much larger trading entity than the CBOE, has a new batch of Bitcoin futures expiring.
Envision this trading tactic:
First, imagine you have access to millions of dollars. You place a futures contract betting that Bitcoin's price will drop to $10 000 on January 26. You buy millions of dollars worth of Bitcoin, causing the price to move up. People join in buying as more traders do the same. You wait until a short period before your futures expire, say a day or so. You then liquidate your Bitcoin at the inflated price. The price tumbles back to $10K. You win the futures contract as it expires and re-buy Bitcoin while it is still low.
Watch for a significant price drop in Bitcoin on January 25. I recommend sheltering your Bitcoin, or at least partially hedging it, in Ethereum or USD Tethers. Following the dip, buy back into Bitcoin on the 26th in the early stages of its recovery.
In time, futures will become less of an issue as they will be renewing and expiring on a constant basis. At the moment, it is a sole set of contracts expiring at once since it is the first set of CME contracts, so it should make larger waves than future contract expirations.
You might not be a whale, but you can take advantage of the waves they cause!
*This is not professional trading advice - just my opinion!
source:
https://cointelegraph.com/news/first-bitcoin-futures-contract-expires-at-10900-win-for-bears
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http://bombayoutdoors.com/outdoor-decor/backyard-playsets/