The wait is over
The Chicago Mercantile Exchange (CME) is offering the long-awaited Bitcoin Futures starting today. As a regulated exchange, the CME enjoys the confidence of many investors. Thus, the new offer could quickly have an impact on the Bitcoin price. For the Altcoins, on the other hand, it is becoming increasingly difficult to emerge from the Bitcoin shadow. We take a look at current events.
What are Bitcoin Futures?
Bitcoin Futures offer investors the option to trade the future coin price now. Futures are forward contracts that allow investors to hedge against price fluctuations. Volatility is a double-edged sword in cryptospace. While many traders see the enormous price fluctuation as a great opportunity, other investors want to protect themselves against the wild fluctuations. For Bitcoin futures, the speculators themselves do not need to own Bitcoins. They simply forecast the future price.
CME could displace Bakkt
The name “Bakkt” circulated through Kryptonews last year. After several announcements the hype about the first Bitcoin futures increased rapidly. As a result, there were several delays and users doubted that Bakkt would even be launched. When the Bitcoin Futures exchange was finally launched, a low trading volume caused disappointed investors. Bakkt should become one of the most important set screws in the crypto year 2019 and pave the way for industrial investors. CME could now take this place and thus influence the price of Bitcoin.
Influence on the Bitcoin price
The CME offer hits the crypto market at an optimal time. The total market capitalization is above the important USD 200 billion mark and Bitcoin is currently confirming the bull run of the past days. A Bitcoin Dominance Index of approximately 68.1% implies where the focus of investors is. The “digital gold” is considered a safe haven and crisis-proof. This was once again made clear by the USA-Iran conflict. After the bakkt launch, it did not take long for Bitcoin to plummet by over USD 1500. The “sell the news” behavior mixed with the disappointment about the low trading volume. With CME this could look different. Should the news have a positive effect on the Bitcoin price, there is little resistance to a bull run up to 8600 USD.
At the time of this article, the BTC stands at a price of USD 8127. SegWit reached a new all-time high only yesterday and the scalability rose to over 200%. A 24 hour volume of over 22.5 billion USD shows the current interest in Bitcoin. A new attempt to reach the 10000 USD mark could displace the old coins even further.
A new exchange offers Bitcoin futures and the old coins continue to lose ground. The “Altcoin Season” ended in 2019 and currently it looks like the market will behave similar this year. In addition, major events such as The Bitcoin Halving, the Libra Launch and the GRAM launch are expected to take place. Ethereum and Co. are facing a tough battle, use cases and partnerships must reach and address the public. In the past few days, Bitcoin Forks BSV and Bitcoin Cash have been able to clearly isolate themselves from the rest of the crypto market and record enormous price gains. High pumps are still possible, although less frequently.