RATE Group | Relying on Bitcoin’s Halving Price Pump Could Be a Huge Mistake, Warns Asset Manager
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Relying on Bitcoin’s Halving Price Pump Could Be a Huge Mistake, Warns Asset Manager

24 Dec Relying on Bitcoin’s Halving Price Pump Could Be a Huge Mistake, Warns Asset Manager

Posted at 19:04h in Cryptocurrency News by

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  • Bitcoin Asset manager claims most firms looking to speculate on bitcoin will use derivatives market instead of the underlying asset.
  • The market share of physical oil compared to oil derivatives plummeted when futures trading was introduced.
  • ‘Financialization’ of bitcoin will distort its innate pricing mechanism. Don’t count on a halving pump in 2020.

The tendency for bitcoin to multiply in value following regularly scheduled halving events should not be relied on in 2020.

That’s according to a cryptocurrency asset manager who warned the bitcoin derivatives market may have wreaked havoc with BTC’s traditional pricing mechanisms.

Derivatives Break Pricing Mechanisms

Meltem Demirors, who oversees $1 billion worth of assets at CoinShares, said the introduction of derivatives has shifted focus away from the underlying digital asset.

According to Demirors, the bitcoin derivatives market will pull focus away from the underlying market – to the extent that BTC’s halving pump…

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