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CME Group Sees 'Strong Adoption' of Micro Bitcoin Futures

source-logo  bitcoinexchangeguide.com 12 May 2021 14:04, UTC

Regulated exchange CME Group said on Tuesday that more than 100,000 micro bitcoin futures worth $570 million traded in the first six days of its latest product launch. The micro bitcoin contract represents 1/10th of a bitcoin versus the regular contract, which represents 5 bitcoins. With the current BTC price around $54,800, it would allow smaller participants to invest in the trillion-dollar asset. “We are pleased to see strong customer adoption and support for our new Micro Bitcoin futures contract early on,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “Together with our existing, full-sized Bitcoin futures, this new, smaller contract further strengthens our ability to help a broad array of clients – from institutions to sophisticated, active traders – to manage their bitcoin price risk,” he added. The price of Bitcoin has been chopping for a couple of months now, failing to make it to $60k yet again on its most recent attempt. However, while the weekend pullback was the second one, we are seeing higher lows each week. The price has resistance at $60k, and support is present at mid-low $40,000s. It is worth noting that “Bitcoin’s market cap is high. It takes a lot of money to push it around. The bid isn’t there for the time being, and the range remains intact,” wrote traders CryptoCred and DonAlt in their weekly newsletter TechnicalRoundup. But at the same time, things change quickly with Bitcoin, and “a significant corporate treasury allocation could force a rotation, and that’s a move that would be risky to fade.” This may come from Facebook CEO Mark Zuckerberg, who shared his two goats in a social media post mentioning that one is named Bitcoin. The market expects this to mean something, as we saw with Tesla CEO Elon Musk’s tweets before the electric car maker announced that it had invested $1.5 billion in BTC. Amidst this, the active bitcoin supply is growing, with 45% of the circulating supply moved within the last 365 days, noted Arcane Research. Finding stability at around 2.4 million BTC, a net positive inflow of bitcoin supply has been seen to exchanges for the first time since January 9th. With crypto’s retail and institutional adoption growing at a fast pace since last year and the market in full degen mode, “timing the top for this cycle is going to be very tricky,” noted Qiao Wang of DeFi Alliance. It is “because this is the first cycle where crypto is big enough to be affected by macro conditions (e.g., inflation, rates, monetary supply).” Crypto is no longer an isolated system and has become a much more complex one; as such, he advises to “take risks responsibly...instead of constantly worrying about the top.” [deco-beg-single-coin-widget coin="BTC"]