Traditional financial products can also have an impact on the market price of bitcoin, particularly derivative products that represent contracts that track the underlying price of BTC. As we’ve already discussed, leveraged futures trading can often fuel steep price changes, but so can other products such as crypto options. In short, crypto options give investors the right, but not the obligation, to buy or sell the underlying asset (in this case, bitcoin) at a certain price (known as the strike price) prior to, or on, a certain date.
- What Makes Bitcoin Price Go Up … or Crash Down?
Written by Bankerage Published on December 18, 2021