What will be the effect of Bitcoin trading on the CME?

It may not exactly legitimize cryptos but it is not ineffective either. for example when people see someplace this big and legit added bitcoin and then they see some idiot like JPMorgan CEO call bitcoin fraud, they would pay less attention to that idiot after this. and that’s something.

bitcoin trading

As for price it is hard to say, so far it coincided with the correction and many believed it will cause a dump (although they are wrong because of the way CME market closes when the drop is bigger than 7%) so in short term we are seeing that.
in long it will also coincide with the recovery and the rallies, and possibly because of what i said above it will help with the rise.

I actually never heard about them, but the news seems very positive and exciting. What I think is that, the Bitcoin will get more investors from such exchanges. There investors might be the ones who could easily invest million into the Bitcoin. That would be really awesome for its image because the more investors into the community will increase its value without any second thought.

It may not exactly legitimize cryptos but it is not ineffective either. for example when people see someplace this big and legit added bitcoin and then they see some idiot like JPMorgan CEO call bitcoin fraud, they would pay less attention to that idiot after this. and that’s something.

This actually the first time I have heard about CME and regarding its effect on it to the bitcoin cryptocurrency. I don’t think that the bitcoin will legitimize just because of that because many business and companies are aware of the threat bitcoin can inflict to their company which is why they are being wary about that, and claiming that bitcoin is just another fraud or scam.

Agreed… I think it will add an air of legitimacy. More investors will actually think of Bitcoin as a real asset class.

And for those that don’t know the CME… it’s a monster! The entire world of options and futures is pretty much run out of «The Merc», as it’s called. The group is over 100 years old and is most known for open outcry pits (the old videos where you see people in multi colored jackets waving furiously and shouting out orders). Nowadays, most of those are gone and trading is largely electronic.

Daily trading volumes on the CME are around easily over $1 trillion in value. In comparison, a typical 24 hr trade volume for Bitcoin is about $1 — $2 billion.

It will for sure legitimate cryptocurrencies, since most of the trading is gonna take place in money therefore it won’t directly effect the proce of bitcoins also, we all know that big whales have casted out of bitcoins and adopted bitcoins cash but still bitcoins is on a descent price thus I do think that its because of the CME , and the long term effects can be quite harmful if someday they decided to end this project then a huge sum of Money will be widrawn out moreorso it will be an end for bitcoins, it does give them a strong authority over it.

It’s actually more significant than just «withdrawing money». Most people don’t know this, but CME Bitcoin futures actually allow traders to «go short». That means they can essentially own -1 Bitcoins. So now, they make money if Bitcoin goes down and lose money if Bitcoin goes up.

Being able to «go short» is a massive change to the market dynamics of Bitcoin. Previously, the only downward pressure on the price of Bitcoin were sellers. But those sellers were previously buyers. Now, with CME futures, traders can exert downward pressure on Bitcoin without ever having first bought it! Maybe this explains the recent drop in price??

It brings awareness and legitimacy to Bitcoin…and a very select few other cryptocurrencies.

Price wise there isn’t a direct correlation between the futures exchange and the blockchain. The futures contracts, the betting, happens on the CME or CBOT exchanges only. Those contracts never hit the blockchain, therefore they can’t directly influence the price of Bitcoin.

Additionally, the firms or big investors need to hold reserve Bitcoin to back the trades or market they’re making. That could have explained the price run-up before the first issuance of the contracts on each exchange.

The biggest thing that would lead investment firms to add Bitcoin to their portfolios is the 10+ fold increase in price in 2017…none of that was related to the futures contracts.

Well I’ll begin with the positives, it has brought global attention to bitcoin’s, has woken up the greedy corporates that are now parking their money in btc. It has opened the way for btc etf. Coming to the negative’s it has brought Bitcoin’s under tremendous scrutiny, Bitcoin has gone into the hands of the corporate who can make it dance to their tune. The world leaders are upset because of this. I feel this has messed up the coin.

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