Does anyone know the terms of the BTC futures contract? I just find it highly unlikely that there would be a market crash on the same day futures are expired.
From my understanding, a futures contract is a gamble on the price of BTC at a later date. The higher the value of the asset, the more the bank has to pay out. Is this right?
It's not highly unlikely because there is a futures expiration every month and bitcoin makes a significant move in one direction or the other like almost every week, if not more than once per week. It's really not unlikely for them to coincide at all.
Also futures contracts are cash settled and don't involve any transfer of actual bitcoins, which means that they don't affect bitcoin price at all.