Blossomer
@blossomer
When Bitcoin futures rose by over 4% and once broke through $73,000, investors' hedging and speculative behaviors in the futures market affected the spot market. Hedgers in the futures market may buy Bitcoin in the spot market to offset potential losses, increasing spot demand. Speculators, on the other hand, may drive up futures prices, creating an expectation of higher future spot prices. This leads to more investors buying spot Bitcoin, increasing demand and pushing up the price. Data shows that for every 10% increase in futures trading volume, spot Bitcoin price increases by about 3 - 5% due to changes in market sentiment and supply - demand dynamics.
0 reply
0 recast
0 reaction