Bitcoin Fixed Supply Means Futures Aren’t a ‘Threat’ to Price — PlanB

The Bitcoin (BTC) price analyst who created one of the industry’s best-known prediction models thinks futures markets will not undermine the cryptocurrency. 

In a Twitter debate on Dec. 26, PlanB, father of the Stock-to-Flow tool, dispelled fears that Bitcoin futures markets could negatively impact price.

‘Inelastic’ supply preserves BTC

“I don’t see futures as a threat to #bitcoin,” he summarized.

The comments follow months of speculation about futures in light of Bakkt’s offering going live in September this year. Days after launch, Bitcoin markets fell significantly, leading to widespread theories of futures manipulating markets.

At the time, Bakkt responded by arguing that its product was aiding price discovery. Volumes were nonetheless much lower than expected — existing futures from CME, for example, traded over $500 million per day in May. The underwhelming performance thus added to the suspicion that futures’ market impact was not wholly organic. 

For PlanB,…