Bitcoin Pulls Back After its Futures Contract Launches on CME Group: Last week Bitcoin futures contracts became available on the Cboe Futures Exchange. Now trading Bitcoin got even easier as the world’s largest futures exchange, the CME group launched its bitcoin futures contract.
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However, unlike last week’s surge on the price of Bitcoin, this week we saw a mild pullback from the all-time high levels near $20,000.
But this really is merely news. I personally think Bitcoin traders are becoming too spoiled with the relentless bullish market sentiment, that a mere pullback stresses them out. In my opinion, this pullback should have been even larger. Why? Well, because trading futures needs at least some level of investment expertise. So perhaps this pullback came about as last week’s traders decided to take some profit and started a sell-off sentiment.
The CME’s most popular futures contract, which expires in January, settled 2.05 percent lower Monday at $19,100. The product had opened at $20,650 and initially traded higher. A key difference between the Cboe and CME futures is that the Cboe contract represents one bitcoin, while a CME contract represents five bitcoins.
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The Cboe also settles its futures against a daily price auction from Gemini, while the CME uses its own bitcoin reference rate which tracks several cryptocurrency exchanges. While Bitcoin price hasn’t really followed traditional market sentiment in terms of movement, the most immediate support level appears to be at $15,854.