As Andreas hath sayeth regarding Bitcoin:
https://youtu.be/ZUiMJ9iy7to?t=605
“In the time between December 11 and December 31st, we will see a *lot* of volume (through CME).”
Basically, the CME is going to bring futures into the Bitcoin market in a big way. The entry of the CME has been in the news, but that video of Andreas puts an exclamation point on the situation.
I’m about to hedge, but it’s apropos. It’s possible that *most* large buyers will buy *in* to move volume. It’s possible that an institutional player or two might buy a lot of bitcoin right away — they were just waiting for an org like the CME to offer shorts. It’s possible that a *lot* of big players (especially miners) are buying *in* right now. It’s old news that Goldman Sachs has been buying Bitcoin, but I don’t think that’s typical. It’s possible that a lot of large, highly regulated organizations need to hedge bets to make those bets, and the newly present financial instruments (on the CME and elsewhere) are what is making that possible for them.
When demand goes nucking futs while supply quantifiably and predictably increases at a massively lower rate than new demand, we are pretty sure we are in for a price increase.
That doesn’t mean that we end up at a higher price than prior to institutional investment. It just means that the price spikes *now*, temporarily.
Andreas suggests that volatility will be reduced by the new instruments in the long run. I think he’s right. Of course, I have *no* idea where an equilibrium might be reached. I don’t think anyone really does.
What makes that video way more interesting is that Andreas is not paid by the CME, and would probably not sign something that prevented him from speaking about what he wanted (That’s not just a guess as to what his character is like (although I want to believe he’s a good guy) — but it’s his most obvious financial incentive — speaking — teaching — is what has made his patreons and supporters love him and fund him). So, Andreas can say whatever the hell he wants. I just became a Patron. That is an actual PSA on my part, not a plug. Even if blockchain tech is just a hobby-level interest of yours, I suggest you take a quick look at the benefits of his Patreon options and think about it. https://www.patreon.com/aantonop/posts
