Bitcoin
Bitcoin in Focus as CME Reportedly Plans to Offer Spot Trading in the Cryptocurrency
Key Takeaways
- Bitcoin is in focus Thursday morning after the Financial Times reported that futures exchange CME Group plans to offer spot trading in the legacy cryptocurrency.
- Under the proposed plan, CME would manage the spot trading business through the EBS currency trading venue in Switzerland, a platform that has specific regulations related to the trading and storage of crypto assets.
- A move higher from current levels could see Bitcoin make another attempt at its all-time high of $73,835.57, while a failure to hold above the 50-day moving average could see the price fall. to long-term support around $52,500.
Bitcoin (Bitcoin), the largest cryptocurrency by market capitalizationremains in focus Thursday morning after the Financial Times reported that futures exchange CME Group (CME) plans to release to see Bitcoin Trading. The news comes a day after the digital asset recorded its best one-day performance since March 25, following a softer than expected decline. inflation data.
Under the proposed plan, Chicago-based CME would manage the spot trading business through the EBS currency trading venue in Switzerland, a platform that has comprehensive regulations regarding trading and crypto asset storagepeople with direct knowledge of the negotiations told the Financial Times.
CME, which already offers a range of Bitcoin and Ether derivative products, held discussions with traders who wish to trade cryptocurrencies through a regulated market, the sources said, although they noted that no deal has been finalized.
The move would allow investors to execute more complex Bitcoin trading strategies involving spot and futures markets such as basic trading. They work by borrowing money to sell futures while buying the underlying spot asset and profiting from the spread differential between the two.
News of CME offering Bitcoin spot trading comes after the cryptocurrency gained more than 7% on Wednesday following a weaker-than-expected valuation consumer price index (CPI) The numbers eased concerns that persistent inflation could impede interest rate cuts expected later this year. Bitcoin, like other risky assets, remains highly sensitive to rate movements as high yields make assets safer, such as US Treasuresmore attractive to investors.
Monitor these price levels amid closes above the 50-day moving average
Bitcoin Price Has Struggled to Gain Positive Momentum Since It Broke symmetric triangle in early April, with investors readily selling on any counter-trend rally over the past month. However, in a sign that sentiment may be turning back in the bulls’ favor, Monday’s rally, which came with the highest trading volume in two weeks, Coin basesaw legacy cryptocurrency close above closely watched 50-day moving average (MA).
Looking ahead, a move higher from these levels could set the stage for Bitcoin to make another attempt at its all-time high of $73,835.57 (ATH) set in March of this year, while a failure to hold above of the 50-day MA could cause the bears to rally. control and the price falls for the long term support about $52,500.
Bitcoin was trading for around $66,400 at 8:30 a.m. ET.
Comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Read our warranty and disclaimer for more information.
As of the date this article was written, the author did not own any of the above securities.