NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

The Days of Futures Halting Bitcoin From Passing $1 Trillion Are Likely Over

Nick Chong
Nick Chong
1 year ago
3 mins read
futures chart for Bitcoin piece

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

A long-held theory in the Bitcoin market is, the launch of CME futures popped the cryptocurrency bubble.

When the established derivatives exchange launched the product, BTC surged dozens of percent higher in the days that followed, only to crash from $20,000 to around $6,000 within two months. The timelines suggested that it was the futures market that depressed prices, just look at the chart below.

Bitcoin price chart futures
Bitcoin price chart in the wake of futures launch. Chart from Tradingview.com.

This has largely been painted as a conspiracy theory, but a top analyst recently threw his weight behind the sentiment. He said that futures are “slowing this vision” of Bitcoin passing $1 trillion down.

On-Chain Analyst: Futures Market Depresses Bitcoin

In an extensive thread published May 8th, Willy Woo, a prominent on-chain analyst and Bitcoin investor, noted that the ongoing halving will change one core thing: exchanges will be the biggest net sellers of coins.

To fund their operations, exchanges need to sell coins, which they obtain by taking trading fees from investors. Woo is arguing that after the halving, it will be the exchanges that are selling Bitcoin. Futures exchanges, especially, he explained.

The analyst specifically drew attention to BitMEX, which has become so integral to crypto that it transacted $16 billion worth of volume in a single day. Yes, $16 billion. On this exchange in particular, Woo wrote:

“When I look at the long term price chart of BTCUSD 2017-2020, the rise of the BitMEX style futures exchanges has made a irrevocable footprint on the price, we have much more sideways now from the additional sell pressure.”

Along with futures exchanges creating selling pressure, Woo added that they likely increase volatility, noting how large traders are incentivized to liquidate the majority by creating volatile price action.

Considering that futures are now dominating the market, Woo concluded by explaining that futures trading is slowing down the vision of Bitcoin exceeding $1 trillion, then $10 trillion in the future.

If we think Bitcoin needs "number go up" to exceed $1T and then $10T market cap to make a dent in the world (I'm one of those) then futures trading slows this vision down. Slows number go up, increases volatility.

— Willy Woo (@woonomic) May 9, 2020

It’s a Spot Driven Rally

Woo’s assertion is one that was corroborated by a report from the San Francisco Federal Reserve, yet times are changing.

According to market data shared by traders, the ongoing move, the one that brought Bitcoin from the $6,000s to $10,000 today, was driven by the spot market. This means that the somewhat-bearish thesis laid out by Woo regarding futures is partially invalidated.

As shared by Mohit Sorout, a partner at Bitazu Capital, much of BTC’s move last week ($7,500 to $9,500) was catalyzed by spot market activity. He noted that BitMEX’s open interest metric hit an all-time low while BitMEX Bitcoin traded at a discount to Coinbase, indicating it was retail and institutional players buying Bitcoin for cash rather than individuals longing futures contracts.

Bitmex OI hits a new All Time Low. This $btc rally was purely a spot dominated ripper.

Incredible. pic.twitter.com/fpYMxz9nhS

— MS📈 (@singhsoro) April 30, 2020

This has been corroborated by the fact that BitMEX’s funding rate, a sign of the directionality of leverage traders, has been effectively at 0% (and even negative) for the past few weeks. This suggests that neither longs nor shorts are overleveraged.

With the spot market clearly driving the ongoing rally while futures lose traction, Bitcoin’s rally is that much more credible and sustainable.

But for this trend to continue, BTC will need to continue to rally on the back of buying pressure on sites like Coinbase, which minimize leverage and actually takes supply off the market, as opposed to the “cash not physical” model of most derivatives.

Photo by Chris Liverani on Unsplash
Tweet123Share218ShareSend
Nick Chong
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

TRON Defies Market Dip as USDT Activity and Drawdown Metric Signal Growth

TRON Defies Market Dip as USDT Activity and Drawdown Metric Signal Growth

While the broader crypto market experienced a downturn with a 2.7% decline in total market cap over the past 24...

Samuel Edyme 2 hours ago
Ethereum

Ethereum In Demand: ETF Inflow Streak Extends To 7 Weeks

Institutional demand for Ethereum appears strong as spot exchange-traded funds (ETFs) have recorded seventh-straight week of inflows. US Ethereum Spot...

Keshav Verma 3 hours ago
Bitcoin Price Trims Gains

Bitcoin Price Trims Gains — Bulls Lose Steam Near Resistance

Bitcoin price started a fresh decline from the $108,800 zone. BTC is now consolidating and might aim for a move...

Aayush Jindal 4 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

PENGU爆量起飛42%價格突破0.0145美元 BTCBULL預售780萬最後FOMO階段!

Kelvin Lee 22 minutes ago
Bitcoin, Crypto, BTC

Bitcoin Holds Key Level Amid $108,000 Rejection, But Analysts Suggest Caution This Quarter

Rubmar Garcia 1 hour ago

Акции Chainlink выросли почти на 12%

lisachaikina 1 hour ago

Premium Sponsors

Press Releases

  • Ethereum Enthusiasts Easily Earn a Stable Daily Income of...

    8 hours ago
  • Hledáte nejlepší kryptoměny k nákupu v roce 2025

    Hledáte nejlepší kryptoměny k nákupu v roce 2025? Tady...

    11 hours ago
  • Cauți cele mai bune criptomonede de cumpărat în 2025?...

    12 hours ago
  • Tražite najbolje kriptovalute za kupnju u 2025. 4 top izbora za vaš portfelj

    Tražite najbolje kriptovalute za kupnju u 2025.? 4 top...

    12 hours ago
  • 今が狙い目の割安アルトコイン特集|注目すべき銘柄をチェック!

    ...

    16 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.