Skip to main content

Large Bitcoin Futures Gap Causes Temporary Trading Pause, ETH Open Interest Hits All Time High

Large Bitcoin Futures Gap Causes Temporary Trading Pause, ETH Open Interest Hits All Time High

CME Group temporarily paused trading of bitcoin futures after the market opened to a large gap of over $3,000 between the derivatives and the underlying crypto asset.

According to a report, it was this huge futures gap which “amounted to a massive upside volatility” that led to the trading pause. Futures gaps are caused by information or changes in investor sentiment that occur when the market is closed or not trading.

The reported large CME futures gap occurred when bitcoin, which is traded every day on spot markets, rallied to a new all-time high of $28,422 before retreating.

Large Bitcoin Futures Gap Causes Temporary Trading Pause, ETH Open Interest Hits All Time High

Before the weekend rally, bitcoin trading on December 24 had peaked at just under $25,000. The difference between the Thursday high and the new all-time high resulted in the large discrepancy between the spot and futures market when trading on CME resumed on December 28.

Due to the misaligned trading periods between spot and futures markets, such gaps, which can either be negative or positive, will always exist. Enterprising traders can interpret and exploit these gaps for profit.

In the meantime, as CME experienced the unusually large gap, the team at Bybt were reporting a new all-time high ETH open interest of $2.21 billion. The new December 27 record comes after the ETH price went past the $700 mark for the first time since May 2018. Starting November 28, ETH has surged by almost 40% from $537.80 to $745.05 by December 28. However, at the time of writing, the token had treated to $729.50.

Large Bitcoin Futures Gap Causes Temporary Trading Pause, ETH Open Interest Hits All Time High

Meanwhile, as one report explains, the ETH rally appears to be linked to “the high number of tokens staked before the Ethereum 2.0 launch on December 01.” Furthermore, the report, which sites Dune Analytics data, adds that “more than 1.4 million ETH has been locked up.” Further, the derivatives exchange CME Group will be launching ethereum futures in February 2021, pending regulatory approval.

What are your thoughts about the large gap on CME bitcoin futures? Share your views in the comments section below.

The post Large Bitcoin Futures Gap Causes Temporary Trading Pause, ETH Open Interest Hits All Time High appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/34UvFLu
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more