It’s the last Friday of the month. That means futures expire tomorrow and like clockwork bitcoin fell about 10% before recovering slightly to $9,400.
About 40,000 bitcoin representative contracts exchanged hands on CME this August 28th. That’s circa $380 million of Wall Street bankers money.
Every single day – except for weekends – they take a bet on whether bitcoin’s price in crypto exchanges will rise or fall, with such bets in total now usually amounting to about $300 million a day.
These bets never touch actual bitcoin, but they are based on bitcoin’s price as aggregated by CME on at least four exchanges: Bitstamp, Coinbase, itBit and Kraken.
“Each day, the BRR aggregates the trade flow of major bitcoin spot exchanges during a specific one-hour calculation window. This one-hour window is then partitioned into 12, five-minute intervals, where the BRR is calculated as the equally-weighted average of the volume-weighted medians of all 12 partitions,” they say. Read More at TrutsNodes...