Veteran trader Peter Brandt dispels a longstanding myth about what drives BTC
The veteran merchant, Peter Brandt, has taken to Twitter to dispel the myth of what drives the Bitcoin price. “Does CME Group Control the Price of Bitcoin?” he asked.
Does @CMEGroup control the price of Bitcoin?
In accordance @CoinMarketCap the global daily trading volume is approx. 2.5 million $BTC
The daily trading volume on CME is approx. 45,000 BTC
To suggest that the CME controls the price of BTC is complete bullshit
— Peter Brandt (@PeterLBrandt) 21 September 2022
In response to this, he gives Bitcoin’s global daily trading volume as approximately 2.5 million BTC, while the daily trading volume at the CME is almost 45,000 BTC. “To suggest that the CME controls the price of BTC is complete bullshit,” he concluded.
Commenting on the post made by the veteran trader, cryptoanalyst Willy Woo believes that the futures market overall affects the Bitcoin price, of which CME is a small part. “Worth noting: BTC USD futures volume dwarfs spot. While CME is a small part of the total futures, the futures market is the majority. Futures markets undoubtedly lead the price more than spot,” he stated.
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CME Group, which describes itself as the world’s leading derivatives market, launched its first BTC futures contract in December 2017, and an ETH futures contract was introduced in February 2021. This year, the derivatives exchange increased the number of cryptocurrency investment instruments it offered by adding micro-BTC and ETH futures. CME Group also introduced Bitcoin and Ether futures in late August.
Bitcoin is still indecisive
Although attitudes remained cautious in light of the Federal Reserve’s warning that the economy could suffer as a result of its policy tightening, cryptocurrencies managed to fend off falls caused by another significant interest rate hike.
After a brief recovery at the $19K mark, Bitcoin was trading slightly lower at $19,168 at press time. JPMorgan CEO Jamie Dimon did the digital asset markets no favors when he reiterated his skepticism, referring to cryptocurrencies as “decentralized Ponzi schemes.”
Some traders may seek confirmation that a bounce is likely from indicators such as Bitcoin’s 14-day relative strength index. The momentum indicator, RSI, is almost at oversold levels. However, after the Fed’s belligerent performance, contrarian bets on riskier assets appeared to be scarce.
TD Sequential, according to cryptoanalyst Ali, “presents a buy signal on the daily chart, which could support a BTC recovery towards $20,000.” To prevent a decline to $16,500, BTC must maintain a price above $18,000.
