FTX launches US Dollar futures – will Bitcoin be saved?

Cryptocurrency exchange FTX is expanding its reach into the world of forex derivatives trading by listing US dollar spot index futures.

FTX Launches US Dollar Futures - Will Bitcoin Be "Saved"?

While the crypto market is stuck in the doldrums, forex traders have recently experienced a similarly massive wave of volatility. The US dollar with its important role on the global scene, especially becoming stronger after several rate hikes from the Fed, is hovering near an all-time high at 111.76.

Historical US Dollar Strength Index (DXY) as of October 4, 2022.  Source: TradingView

It is because of this that many other influential currencies such as the British pound, Japanese yen or Euro have fallen into turmoil against the US dollar in recent weeks, forcing governments to quickly adopt policies. intervene directly in the market to help balance the exchange rate.

And of course, as one of the largest cryptocurrency exchanges in the market today, FTX cannot pass up this opportunity. For FTX's new perpetual contract, the product will be called the "FTX Dollar Spot Index", which is designed to track the performance of a basket of four leading global currencies against the US dollar, the euro and yen. Japanese, Canadian dollars and British pounds.


However, before the sudden listing move of FTX, the Twitter community seems to have been quite optimistic about this information, some people think that FTX is really "saving" Bitcoin. The recent strength of the USD has clearly weakened the BTC price in the spot market. Now, through the new product, it is as if FTX is enabling traders to short (short) USD to open up a bullish opportunity for BTC.


However, there are also many opinions arguing that this is essentially just a new "trick" of FTX to generate profits based on investors' future trading differences, thereby using this profit to buy companies. The company is on the verge of cheap real estate when the USD weakens.


FoxCryptoNews summary

Oct 04, 2022

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