Bitcoin Rallying Above $4,000 Could be Due to Bitmex Futures: Analyst

There is a noticeable correlation between Bitcoin’s latest jump and Bitmex Futures, believes Luke Martin.

The renowned cryptocurrency analyst said Thursday that Bitcoin price moved north right after Bitmex launched its September futures, XBTU19. Martin noted that the bitcoin market underwent a jump in volume and volatility after the XBTU19 went live. He also identified two similar events in the past in which the beginning of new futures contracts coincided with increased volatility and volume in the Bitcoin market.

Bitmex Futures and Bitcoin Price | Source: Luke Martin

Martin referred to a Bitmex June Futures contract (XBTM19) which went live on December 18, 2018. The bitcoin price rallied up to 34 percent after the futures trading began. In the same month, on 27, other Bitmex futures (XBZ18) expired. Soon after the expiry, the bitcoin price jumped 8 percent.

Marting considered those two events as pieces of evidence for a third-possible rally. On Wednesday, the crypto-analyst wrote that while he wasn’t sure about a rally, it was “reasonable to expect a higher chance of volatility and volume.”

Bitmex September 2019 Futures Launch

Bitmex XBTU19 started trading Friday. A day later, bitcoin price jumped above