Or maybe a bit of both?
CBOE Bitcoin front month futures are down on the day - now to $17,650. We started the day at $18,550. Meanwhile, Bitcoin itself is also trading lower on the day - now at $16,445 after hitting highs of $17,148.
The major dip came in the opening hour as futures contracts traded to a low of $17,530. So, is Bitcoin reacting to the futures market movement? Or is the futures market just following the erratic nature of the underlying itself?
Do keep in mind though that CBOE futures only has 299 contracts traded so far in the day, a pale comparison to yesterday's volume of 3,969 contracts. So, in terms of liquidity that's not the best gauge. But it is something to think about.
It's still early days with respect to futures trading for Bitcoin. We still have the CME futures debuting next week. But surely, this issue will be looked into more as time passes by - so keep it in your back pocket.
