HomeCryptocurrency investingShorting Bitcoin Futures Not Happening
Shorting Bitcoin Futures Not Happening

Shorting Bitcoin Futures Not Happening

  • December 18, 2017

Shorting Bitcoin Futures Not Happening. Here’s Why.

According to Fox Business News today there’s very little action so far in shorting Bitcoin futures. And on the scoreboard of Bitcoin futures the CME has posted nearly 1,000 more Bitcoin futures contracts than the CBOE did on their first day. According to Fox Business News, Microsoft and Expedia among other major companies are now accepting Bitcoin for payments which is a whole other reason to explain why Shorting Bitcoin Futures isn’t happening.

For all of the talk of a Bitcoin bubble it’s very encouraging to see shorting Bitcoin futures not happening. Why? Because if all of the Bitcoin critics truly believed there was a Bitcoin bubble – just as they said – then why isn’t there a lot of Bitcoin futures contracts shorting Bitcoin? It’s more than a little interesting that all of these critics — and the public at large — aren’t placing any Bitcoin futures bets on a Bitcoin bubble.

Shorting Bitcoin Futures

That’s why shorting Bitcoin futures isn’t happening; no one really believes there’s a Bitcoin bubble. If all of those predictors of doomsday really believed what they said then the Bitcoin futures markets would be flooded with contracts shorting the price. But there aren’t any. When the public at large realizes this we see Bitcoin ballooning through that ethereal $20,000 ceiling straight through to $21,000 and beyond — which is the prevailing view among Bitcoin commentators.

With all of this doom and gloom on an imminent Bitcoin bubble why isn’t there any serious volume on shorting Bitcoin futures? Because no one seriously believes it. At least not enough to put their money where their mouth is and execute a contract shorting Bitcoin futures. If a burgeoning Bitcoin bubble is to be believed, where all the profiteers placing their contracts to short Bitcoin? Anyone still sitting on the fence as to whether or not to invest in Bitcoin should take this absence of shorting activity as the best possible sign to proceed.

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Seth Fields