Markets
Bitcoin in focus as CME plans to offer spot trading in cryptocurrency
Key takeaways
- Bitcoin is the center of attention Thursday morning after the Financial Times reported that futures exchange CME Group plans to offer spot trading in the ancient cryptocurrency.
- Under the proposed plan, CME would manage spot trading activities through the EBS foreign exchange trading platform in Switzerland, a platform with specific regulations related to the trading and storage of crypto assets.
- A rise from current levels could see Bitcoin attempt to once again reach its all-time high of $73,835.57, while if it fails to sustain above the 50-day moving average, the price could drop to long-term support around $52,500.
Bitcoin (BTC), the largest cryptocurrency by market capitalizationremains in focus Thursday morning after the Financial Times reported that futures exchange CME Group (FMC) plans to launch place Bitcoin trading. The news comes a day after the digital asset recorded its best one-day performance since March 25 following a weaker-than-expected performance. inflation data.
Under the proposed plan, Chicago-based CME would manage spot trading activities through the EBS foreign exchange trading platform in Switzerland, a platform with comprehensive regulations relating to trading and crypto asset storagepeople with direct knowledge of the negotiations told the FT.
CME, which already offers a range of Bitcoin and Ether derivative products, has had discussions with traders who want to trade cryptocurrencies through a regulated market, the sources said, while specifying that no arrangement had been finalized.
The move would allow investors to execute more complex Bitcoin trading strategies involving both the spot and futures markets, such as basic professions. These work by borrowing money to sell futures contracts while purchasing the underlying spot asset and profiting from the spread differential between the two.
The news that CME is offering Bitcoin spot trading comes after the cryptocurrency gained more than 7% on Wednesday following a smaller-than-expected gain. consumer price index (CPI) The figures eased fears that persistent inflation could derail interest rate cuts expected later this year. Bitcoin, like other risky assets, remains very sensitive to rate movements because high yields make assets safer, such as American treasuresmore attractive to investors.
Watch these price levels for a close above the 50-day MA
The price of Bitcoin has struggled to gain momentum since its fall. symmetrical triangle in early April, with investors selling quickly following any counter-trend rebounds over the past month. However, in a sign that sentiment may be shifting back in favor of the bulls, Monday’s rally, which came on the highest trading volume in two weeks on Coinbasesaw the old cryptocurrency close above the closely watched level 50-day moving average (MA).
Going forward, a rise from these levels could pave the way for Bitcoin to re-attempt to reach its all-time high (ATH) of $73,835.57 set in March this year, while a failure to holding above the 50-day MA could see bears regain some ground. control and the price falls in the longer term support approximately $52,500.
Bitcoin was trading at around $66,400 as of 8:30 a.m. ET.
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