JP Morgan to trade Bitcoin futures

JP Morgan traders will be able to begin trading Bitcoin futures by December 2017
26 November 2017   1611

Despite the statement of Jamie Dimon, CEO of JPMorgan Ltd., who faced a lot of controversy after saying that Bitcoin is a fraud, stating that it is necessary to fire anyone “stupid enough to trade bitcoin”, it came to light that JP Morgan will let its traders begin trading bitcoin futures.

J.P. Morgan, an American multinational banking services holding company headquatered in New York City, is considering the option of providing the clients with access to a new Bitcoin product of CME through its futures-brokerage unit. As it is known JPMorgan Securities Ltd. has already been trading Bitcoin through custodian accounts in Sweden since September, when the corporation made buying and selling Bitcoin operations using Sweden’s Nordic Nasdaq stock market. 

It seems like JPMorgan decided to respond to the customers' growing demand for Bitcoin and plans to launch Bitcoin futures trading on December 11.

Previously, it was reported that JP Morgan faced allegations from Swiss Financial Market Authority for breaking rules of money laundering.

In the end of October 2017, the world’s largest derivatives exchange, CME Group, unveiled its plans to launch Bitcoin futures during the fourth quarter of 2017, along with Man Group, the world’s largest publicly traded hedge fund, that was making plans to launch Bitcoin futures trading, and BitMEX, which announced Bitcoin Cash futures trading.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.