Bitcoin Targets $27,000 As CME’s Bitcoin Futures Events Contracts Debut ⋆ ZyCrypto
Bitcoin is gaining significant bullish momentum following a potpourri of several tailwinds, including the launch of event contracts on BTC futures by the world’s leading derivatives market, CME Group.
CME opens trading for event contracts on BTC futures
On March 13, CME Group rolled out bitcoin futures contracts.
This new financial product will “provide a limited risk, highly transparent way for a wide range of investors to access the bitcoin market via a fully regulated exchange.” According to Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, these cash-settled, daily-expiring contracts tied to BTC futures will also offer a “lower-cost way for investors to trade their views on the up or down price movements of Bitcoin.” “
They are valued at up to $20 per contract and will enable participants to know their maximum profit or loss when entering a trade.
CME Group has greatly expanded its offer of crypto derivatives in recent years. This new product will add to the company’s existing series of 10 event contracts linked to the benchmark futures markets, which have traded over 550,000 contracts since inception.
CME’s announcement came as investors breathed a sigh of relief after regulators and the Joe Biden administration stepped in to protect depositors at failed Silicon Valley Bank and Signature Bank. Investors also saw a hopeful sign that the Fed could be less aggressive with rate hikes after the near collapse of the banking sector.
Such a development around ground-breaking cryptocurrency has caused a significant price increase recently.
BTC Clears $25,000 Hurdle As Crypto Market Booms
BTC has rallied more than 13.80% in the past 24 hours to trade at $25,827 at press time, recovering from losses over the weekend. Bitcoin spun last week after uncertainty surrounding the closure of two crypto-friendly banks and the depegging of the USDC stablecoin spooked investors. BTC fell to as low as $19,662 on Friday, according to CoinGecko.
Ethereum, the market’s second largest crypto asset, was up 7.90% in 24 hours, priced at $1,759.23.
The rest of the cryptocurrency market is also in the green, with Dogecoin, the ninth-largest digital asset by market capitalization, rising 7.10% in the past 24 hours to change hands around $0.0766.
The USDC has regained its peg, fueling optimism among investors pouring capital into the crypto asset space. Investors are now watching Tuesday’s release of the Consumer Price Index (CPI) from February.
