Bitcoin futures and how they might not be able to suppress price.

It was raised earlier that the rise of bitcoin futures etfs could allow governments and central banks to suppress the price of bitcoin.

I do not believe in the long run this could work.

The shorting of bitcoin through selling of cash settled futures contracts only works through the arbitrage created between the spot market and the futures markets.

Any entity with a long term view on bitcoin could use this arbitrage to progressively buy greater amounts of bitcoin for the lower prices.

This would end up further restricting supply and eventually increasing prices.

The more the price is suppressed the more shorting is required to keep it down. This would end up being another way that printed money would enter the economy, which would add to inflation and increase the value of bitcoin relative to the money supply.

Whichever way you look at this as long as the buyers of bitcoin take ownership of it the price is very difficult to manipulate.