In recent weeks, much attention has been paid to the doubling of the $ 10 million Bitcoin Cash (BCH) and BCH-based futures exchanged every month on the Crypto Facilities platform. Last month, Crypto Facilities recorded nearly $ 50 million in BCH contracts. Since then, the popular Huobi exchange has taken place In addition, BCH futures contracts have been added, and traders can now take both long and short positions through the Huobi derivatives market (Huobi DM).
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The derivatives market of Huobi adds Bitcoin futures contracts
There has been a significant increase in interest in BCH derivative products, and bitcoin cash spot prices are on the rise. On April 11, Huobi added BCH to the company's derivatives lists, and users can now hold the decentralized cryptocurrency short or long in order to strengthen arbitrage and hedge positions. Huobi DM has performed well since its launch in the fourth quarter of 2018, offering weekly, biweekly, and quarterly futures contracts based on cryptocurrency. Previously, the exchange offered only derivative contracts for Bitcoin Core (BTC), Ethereum (ETH), EOS (EOS), Litecoin (LTC) and Ripple (XRP).
For the newly added BCH contracts, Huobi DM will offer a fee structure for BCH of 0.02% to open or close for manufacturers and 0.03% to open or close for buyers. As with conventional derivative platforms, price, order and position limits are set for the BCH Futures. In addition, the exchange offers real-time risk monitoring and constant monitoring of contract prices, index prices, unusual transactions and positions. "With our advanced price-limit mechanism, there has been no reclaim since its launch," Huobi said during the launch:
The inclusion of Huobi DM means that traders can take both long and short positions with BCH, allowing for arbitrage, speculation and hedging. Since 2017, the value of Bitcoin Cash has fluctuated between $ 75.08 and $ 4,355.62.
Feeding Smart Money
Bitcoin's cash futures markets have grown significantly in recent months, and Crypto Facilities, a subsidiary of the Kraken Stock Exchange, has traded around $ 10 million worth of BCH contracts per month. In the first week of April, Sui Chung, managing director of Crypto Facilities, said in an interview that BCH contracts cost nearly $ 50 million in March. In Blockchain's Bloxlive.tv, co-founder of the Affiliate Economy Token project Jason Fernandes said this week why he considers it important to look at the futures market to see where smart money moves.
"Private investors have always been a kind of wildcard – sometimes they do not behave properly and it's really a hype-driven cycle, whereas institutional investors are more disciplined and follow a strategy," said Fernandes told the Bloxlive.tv host. "So, if you looked at the futures markets, the recent rise of Bitcoin Cash (BCH) and Litecoin (LTC) would not have been a surprise." Fernandes continued:
Bitcoin Cash was around $ 10 million a month, and we've noticed that the price of Bitcoin Cash is reflected when it rose 43% last week. I believe that this is a good way to see which direction smart money is heading.
Over the past 12 months, BCH markets have been encouraging exchanges to offer BCH derivatives, and traders can trade long and short positions on Bitmex, Crypto Facilities, Coinflex and now Huobi. At Bitmex, traders can speculate with the BCH derivative on the future value of Bitcoin Cash with Bitcoin Core (BCH / BTC). Coinflex's newest on-premises cryptocurrency derivatives exchange offers users up to 20x the leverage for Bitcoin-Core (BTC), Bitcoin-Cash (BCH) and Ethereum (ETH) over the Tether Stablecoin (USDT). For the past 30 days, BCH has risen + 109.48% and is now trading at $ 279 per coin on April 14. For some viewers, such as Fernandes, the rise in the BCH contract volume of derivatives one month before the last week on the spot markets was a reliable signal that smart money is moving in.
What do you think about Huobi adding futures markets and recent highs in volume to BCH futures? Do you agree with Fernandes that it is a good way to see which direction smart money is heading? Tell us in the comments section what you think about this topic.
Picture credits: Shutterstock, Jason Fernandes, Twitter, Crypto Facilities and Huobi.
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The Post-Bitcoin Cash Futures Volumes: A prelude to the recent BCH pricing review first appeared in the Bitcoin News.
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