CME Bitcoin Futures Launched

Unlike the 19% surge of CBOE futures a week ago —  the CME futures fell 4% to $18,760 about four hours after opening
18 December 2017   1364

The CME Group, the world's largest futures exchange, opened up bitcoin futures for trading at 6 p.m. EST on Sunday under the ticker "BTC". The reference price, from which price limits are set, is $19,600 for the February contract, $19,700 for March and $19,900 for June.

Unlike the 19% surge in CBOE bitcoin futures during their first day of trading a week ago —   the CME futures fell 4% to $18,760 about four hours after opening at $20,650 and rising slightly. Volume on CME was recently at 590 contracts, while on its debut on December 10, the Cboe traded nearly 4,000 contracts during the full session.

A key difference between the Cboe and CME futures is that the Cboe contract represents one bitcoin, while a CME contract represents five bitcoins. The Cboe also settles its futures against a daily price auction from Gemini, while the CME uses its own bitcoin reference rate which tracks several cryptocurrency exchanges.

BTC charts 18 12 17Bitcoin Charts

At the moment of press, these are main market parameters of Bitcoin:

  • Average price: $18 949,70
  • Marketcap: $317 389 226 439 USD
  • 24h volume: $12 980 400 000 USD

Some investors believe the CME bitcoin futures could attract more institutional demand because the final settlement price is culled from multiple exchanges.

Recently, we have reported about the upcoming bitcoin futures, stressing the most important information about the derivatives.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.