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The Next Leg in Bitcoin’s Bull Market Is Coming as CME Announces Plans for Futures

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Have you had enough of bitcoin’s relentless surge? Well, the digital asset is expected to get a whole lot more expensive now that the world’s biggest exchange has announced plans for bitcoin futures.

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Peak Bitcoin? Think Again

In an apparent change of heart, CME Group Inc. has announced plans to introduce bitcoin futures by the end of 2017. The announcement came a month after the world’s biggest futures exchange dismissed any notion of entering the cryptocurrency space.

The move will allow institutional investors to get in on the world’s hottest asset class using a more conventional market tool. Futures are essentially financial contracts obligating the buyer to buy an asset or the seller to sell the asset. The futures market is largely tied to commodities, equities and Treasury notes.

CME Group’s foray into cryptocurrency is influenced by a recent decision by CBOE Global Markets Inc. to enter the market. CBOE has already announced plans to begin offering bitcoin futures contracts by early 2018. It is currently waiting approval from the Commodity Futures Trading Commission before moving forward.

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According to Bloomberg, the CME futures contract will settle in cash and reflect daily price action from the CME CF Bitcoin Reference Rate. The Reference Rate is drawn from digital exchanges Bitstamp, GDAX, itBit and Kraken. Crypto traders will notice that Gemini is missing from the list. That’s because it has already entered into a deal with CBOE.

CME’s chief executive Terrence Duffy issued the following statement on Tuesday:

“As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.”

“Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract,” Terry added, according to CNBC.

Bitcoin Climbs to New Record

Bitcoin climbed to new record highs on Tuesday, as investors rallied behind growing institutional demand for digital assets. BTC/USD peaked above $6,400 for a gain of more than 4%. At press time, it was trading around $6,379. The latest rally gave bitcoin a market cap of more than $106 billion. As a result, the total market capitalization for all digital assets above $182 billion for the first time.

As the world’s largest cryptocurrency, bitcoin has skyrocketed more than sixfold this year. Institutional investors have paid close attention to the rally, but have hesitated to enter an unproven market with little regulatory oversight. The introduction of a bitcoin derivative is a major step toward the development of bitcoin as a more established asset class. As such, investors can expect a favorable outlook as institutional cash enters the market.

Featured image courtesy of Shutterstock.

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Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

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Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

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XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

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XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other majors look this weekend.

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Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

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Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

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