Related: Bitcoin is Now Just as Volatile as Largest Tech Stocks
Bitcoin futures debuted on the Cboe in December, followed by a launch on the CME. Nasdaq Inc. is still considering entering the bitcoin futures competition. Market observers previously expected Nasdaq to launch futures on the digital currency this year, perhaps as early as the second quarter.
However, bitcoin futures volume is not yet taking off due in part to the large margin requirements associated with these derivatives. Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies.
“Historically, BTC has tended to demonstrate minor recovery on Mondays, following two low volume days throughout the weekend. Over-the-counter (OTC) markets typically open in the beginning of the weak and close its operations prior to the weekend,” reports CCN.
For more information on the cryptocurrency market, visit the Bitcoin category.