The recent Bitcoin Price spike shed shivers across the digital money market that saw the CME Group adjust their daily trading records or the week on its Bitcoin Futures. This was countermeasure that spiked from the firm’s public statistics.
Bitcoin hit a high of $4000 in a span of 24 hours sparking a chain reaction. However, this was a short life relieve which saw the digital asset head back south to settle at $3981.52 after a marginal drop of 0.16% against the green buck on Feb 19. The same day saw a total of 18,000 contracts trade which is a good sign but may not hold long.
The sigh of Relief for CME Futures
According to the data, it is clear that there is a tie between the Bitcoin futures and the BTC price. The BTC/USD pair appears to be hanging on the $3,970. This could be a new indication that both CME and CBOE are getting out of the low volume nightmare that has dogged them for the better part of February. The CBOE has been recording low volumes since their offerings were launched in December 2017.
This is not an isolated case but it also affected the Bitcoin tied products which include the Swiss Exchange SIX’s Crypto Basket Index. The Bitcoin price comes after the CME CEO; Terry Duffy said:
“The future of the crypto market is pegged on the direction the regulation compliance takes.” He goes on to add:
“I’m not quite sure. I was a big believer that we needed to go forward and list Bitcoin in some way, shape or form but also understanding that this is a brand-new asset class”.
On the government stance on crypto, the CEO said:
“… The bottom line is that until governments really start to accept cryptocurrencies… it’s going to be very difficult for the major commercials to come in here and get gung ho on Bitcoin or any other cryptocurrency…”
Institutional Influence in the Crypto Sphere
2018 came to a close with a lot of hope pegged on the support from institutional entry into the digital money markets. Institutions have been sluggish in adopting crypto and Bitcoin in particular. This has spiked a new wave of deliberations centered on the VanEck/Solid Bitcoin exchange trades EFT with the regulators in the US has been backtracking on.
“I really think the key to the success of any currency – whether it’s fiat or crypto – is going to be associated with the government,” -Duffy added before concluding that for any digital coin to be successful in the market, the government support is very vital.
“I think the government needs to be more involved.”