ETH futures launch can not only lead to a decrease in its’ price but also can positively affect the prospects of its main competitor, Bitcoin.
This assumption was made by the famous Wall Street analyst and co-founder of Fundstrat Global Advisors Tom Lee.
In December 2017, the price of the first cryptocurrency set an absolute historical record, reaching almost $20,000. Around the same time, bitcoin futures were launched at the Chicago Stock Exchange (CBOE) and the Chicago Mercantile Exchange (CME).
Coincidence or not, soon after that, the bitcoin price began to decline gradually, losing in the end about 70% of its December values. And as Tom Lee is sure, after launching futures for Ethereum, a similar fate awaits this cryptocurrency.
In particular, the analyst expects that the appearance of Ethereum futures in the market will interest traders-bears that expect to reduce the price of this cryptocurrency, and will ease pressure on bitcoin.
“Since December, bears that did not want to own the underlying assets could open a short position on bitcoin. Now they can shorten Ethereum, which means that the total number of short positions in bitcoin futures will decrease, ” – said Tom Lee.