Bitcoin is gaining substantial positive momentum due to various tailwinds, including the debut of event contracts on BTC futures by CME Group, the world’s largest derivatives exchange.
CME Group introduced bitcoin futures event contracts on March 13. This new financial instrument will “offer limited-risk, highly transparent access to the bitcoin market through a fully regulated exchange for a broad variety of investors.”
According to Tim McCourt, CME Group’s global head of equity index and alternative investment products, these cash-settled, daily expiring contracts related to BTC futures would provide investors a “lower-cost opportunity to trade their opinions on Bitcoin’s upward or downward price movements.”
They are priced at up to $20 per contract, allowing players to determine their maximum profit or loss before joining a transaction.
In recent years, CME Group has significantly increased its crypto derivatives services. This new product will be added to the company’s current suite of ten event contracts related to its benchmark futures markets, which have traded over 550 thousand contracts since their debut.
Investors exhaled as regulators and the administration of Joe Biden intervened to rescue depositors at bankrupt Silicon Valley Bank and Signature Bank. With the near collapse of the banking industry, investors perceived a positive hint that the Federal Reserve might be less aggressive with interest rate rises.
Recent price increases for the pioneer cryptocurrency are the result of such occurrences. Bitcoin has increased more than 13.80% in the past twenty-four hours to trade at $25,827, rebounding from weekend losses. Last week, the uncertainty surrounding the closure of two crypto-friendly banks and the depeg of USDC stablecoin frightened investors, causing Bitcoin to drop. According to CoinGecko, Bitcoin reached a low of $19,662 on Friday.
The USDC has restored its parity, igniting hope among investors pouring funds into the crypto asset market.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.