A Look at Bitcoin’s Future Once the Big Derivative Markets Launch
$BTCUSD, $CME, $CBOE
- Bitcoin futures trading could be choppy.
- Bitcoin is now trading at 16,669.9941,+269.08, or +1.64%.
The world largest cryptocurrency’s parabolic rally would have triggered circuit breakers on 7 of the past 10 trading days, pausing or halting trading to ensure an orderly session, based on the big exchanges rules.
CME Group Inc. (NASDAQ:CME) stipulates a 2-min trading pause if the price of the contract rises or falls 7% from the prior day’s settlement price.
Then there would be another 2-min pause if the gap widened to 13%. No trades can occur at prices higher than 20% from the prior settlement.
Thursday Bitcoin action would have been Wild.
The 7% threshold mark was hit less than 2 hours after the session started. A few hours later 13% fell. Around 10:15a , the 20% cap was hit and held for about an hour. And the price popped above that level at least 6 other times on the rest of the day.
Here is what the CME session would have looked like if futures contracts traced the same curve as Bitcoin.
Have a terrific weekend