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The massive CME Group opened Bitcoin futures trading today and prices stumbled slightly. Media jumps on the decline.
Bitcoin futures are down as the worldâs largest futures market, CME Group, opens trading. Immediately after trading began, Bitcoin futures contracts closing in January jumped to $20,800 before falling to $18,800 at press time. Contracts expiring in February, March and June are still priced at $20,000. Considering Bitcoinâs current spot price of $18,500, Wall Street still seems mildly bullish.
Mainstream media
Of course, no mainstream media report on the price of Bitcoin would be complete without the use of clickbait terms such as âbearishâ or âbubble.â The Telegraph reported on the drop, using the headline âprice falls after investors turn bearish.â This is despite the fact that a 4% drop is absolutely miniscule in the cryptocurrency world.
Likewise, BBC reported on the opening of CMEâs market, reporting that acceptance onto the massive exchange brings Bitcoin a step closer to mainstream adoption. Of course, BBC felt it necessary to immediately follow their statement with a quote from UBS Chairman Axel Weber giving his opinion that âBitcoin is not money.â
Contrast to CBOE
There is a significant contrast in the marketâs reaction to CMEâs futures and its 19% gain after the opening of CBOE futures last week. However, itâs useful to realize that Bitcoin had dropped by thousands of dollars in the days before CBOE trading opened, so a significant gain shouldnât have been surprising. CME futures launched following most exchanges hitting an all-time high Bitcoin price yesterday, so a small drop from these new highs is hardly dramatic.
There are many theories on what comes next for Bitcoin following the opening of CMEâs market. While there are reasonable arguments for the possibility of investors shorting the contracts, investors should remember âthe trend is your friend.â Even Bitcoin-hater and JPMorgan Chase CEO Jamie Dimon admitted that the currency could hit $100,000 before âcollapsing.â Following Dimonâs assessment of Bitcoin as a âfraudâ earlier this year, Swedish firm Blockswater filed a formal âmarket abuse reportâ with European regulators. The company alleges that Dimon knew his statements were inaccurate and was intentionally trying to influence the Bitcoin markets with his remarks.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.