3X Long Bitcoin Token price is $3.40
The price of 3X Long Bitcoin Token (BULL) has decreased today, indicating a -1.95% change in the last 24 hours. This reflects its nature as a token that amplifies the daily return of Bitcoin, causing more significant price movements compared to Bitcoin itself.
3X Long Bitcoin Token, or BULL, is an ERC20 token that operates on the Ethereum blockchain. It is designed to track three times (3x) the daily returns of Bitcoin. This means if Bitcoin's value goes up by 1% over a day, BULL aims to increase by 3%, and conversely, if Bitcoin's value decreases, BULL would aim to reflect three times the decrease. It targets traders who wish to speculate on Bitcoin's short-term price movements with amplified leverage.
The 3X Long Bitcoin Token (BULL) was created by the team at FTX, a cryptocurrency derivatives exchange. FTX specializes in complex trading products like leveraged tokens, futures, and options. BULL is part of the exchange's innovative offerings that provide traders with more options to express their bullish sentiments on Bitcoin.
BULL is a leveraged token that provides the leveraged exposure to Bitcoin's price movements without the need to take care of the technicalities of margin trading such as collateral, funding rates, or liquidation risks. The token rebalances daily to maintain its target leverage, making it more suitable for short-term trading rather than long-term holding due to the compounding effect of daily returns which could result in significant tracking error over time.
The uniqueness of the 3X Long Bitcoin Token lies in its ability to offer three times the daily return of Bitcoin via a simple token purchase. This makes it easier for traders to obtain leveraged exposure without engaging in traditional margin trading. Furthermore, being an ERC20 token, it can be transferred and stored just like any other Ethereum-based asset, providing flexibility within the decentralized finance (DeFi) ecosystem.
The price of BULL is influenced by the daily return of Bitcoin and the demand for the token itself. Since BULL aims to replicate three times the performance of Bitcoin on a daily basis, its price can be highly volatile. The token's price also factors in the efficiency of the rebalancing mechanism and the liquidity available on FTX and other secondary markets.
Since BULL seeks to multiply the daily returns of Bitcoin by three, its performance is closely tied to that of Bitcoin's. However, BULL's leveraged nature also means it's subject to compounding effects. Thus, its performance might differ significantly from Bitcoin's over a period longer than one day, especially during volatile market conditions.
Trading BULL brings risks such as significant volatility and potential for large losses, especially in a declining market. Moreover, due to daily rebalancing, holding BULL for more than one day can result in outcomes that differ from the 3x return target, particularly in a volatile or trending market. It's imperative to understand these risks fully before trading 3X Long Bitcoin Tokens.
The circulating supply of BULL tokens may vary as they can be created and redeemed through the FTX platform based on the demand. Leveraged tokens like BULL do not have a fixed circulating supply like many other cryptocurrencies.
3X Long Bitcoin Token (BULL) can be bought on FTX and any other Gate.io, Indodax, Bittrex, BitMax that support ERC20 tokens and offer this specific financial instrument. Since BULL seeks to offer leveraged exposure, it's essential for interested parties to ensure they are using a platform that understands the complex nature of these products.
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