Chicago Mercantile Exchanges cash-settled Bitcoin (BTC) futures trading products contribute more to price discovery than its related spot markets, according to findings in a new report by investment firm Wilshire Phoenix.
The increasing volumes of crypto derivative products highlight greater participation from institutional investors and this will likely be positive for the entire crypto space.
This is not unique to cryptocurrencies because even in most other asset classes, the derivatives markets lead the spot markets.
Daily cryptocurrency market performance. Source: Coin360
In a separate attempt to determine the valuation of Bitcoin, several experts from JPMorgan Chase opined that Bitcoins price is overvalued compared to its intrinsic value and the analysts suggested that BTC could face selling in the short-term.
The analysts consider Bitcoin to be a commodity and have calculated its marginal cost of production to estimate its intrinsic value.
While fundamentals do work in the long-term, short-term price action is usually dictated by sentiment and technicals. Lets analyze the charts of the top-10 cryptocurrencies to determine the path of least resistance.
Bitcoin (BTC) bounced off the $11,178 support on Oct. 15 but the bulls could not sustain the price above $11,500. This weakness could have attracted profit booking by the short-term traders and shorting by the aggressive bears.
BTC/USD daily chart. Source: TradingV ...
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