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Bitcoin Futures

Definition

Bitcoin Futures represent derivative contracts that obligate the seller to sell Bitcoin at a predetermined price and date to the buyer. These financial instruments allow investors to speculate on or hedge against future price movements of Bitcoin without directly owning the underlying digital asset. They are traded on regulated exchanges, providing a mechanism for price discovery and risk management within the cryptocurrency market ecosystem. The value of Bitcoin Futures is directly derived from the spot price of Bitcoin, influencing market sentiment and liquidity.