What to expect from the launch of ETH futures by the U.S. exchange CME?

This week bitcoin finally surpassed the $20k mark. It’s something we’ve all been waiting for over three years and we want to congratulate all cryptans on this long-awaited event!

But today we are going to talk about not less important event in the industry, which took place on December 16, namely the news about launching futures contracts on Ethereum for institutional traders from American Chicago Mercantile Exchange (CME). Trading is scheduled to begin on February 8.

In this article, we will remember how CME steamrolled and crashed bitcoin by launching the first bitcoin futures; why investing in Ethereum might be a good idea and what we can expect from this event next year.

The launch of Ethereum futures on the CME

The Chicago Mercantile Exchange (CME) is part of the CME Group, a global holding company that was the first in North America (and the second in the world) to offer futures contracts. The exchange opened at the end of the 19th century, and today it is one of the most authoritative and largest exchanges in the world.

Since 2017, CME began using cryptocurrencies as assets, they launched the first bitcoin futures at the very peak of the market, when bitcoin hit the $20,000 mark – December 17, 2017. Since the announcement of the launch, bitcoin rate began to grow rapidly and update its historical highs.

And now exactly after 3 years they are launching Ethereum futures, this event is quite important in the industry, as CME is called one of the key players in the cryptocurrency market, able to manipulate the bitcoin rate at the expense of large investor capital and now they will have access to Ethereum cryptocurrency.

Apparently, due to the high demand for crypto bull derivatives, the exchange has gone out of its way to expand access to digital assets.

According to CME’s website, one contract will be equal to 50 ETH, which means investors will have to pay $32,500 for it at the current rate.

CME Group head Tim McCourt expressed optimism that Ethereum futures will be as successful as their bitcoin futures contracts, which were launched exactly 3 years ago.

Tim McCourt believes that the addition of ethereum futures will provide clients with a valuable tool for trading and for hedging investments.

Of course, this news could not go unnoticed and the rate of the asset rose by 15% per day and, apparently, this is not the limit of its growth.

But if we remember the situation with bitcoin, the rate has similarly started to show good growth since the announcement of the launch of SME futures in late October 2017.

On this news, bitcoin was showing very dynamic growth in anticipation of large hedge funds and institutional investors coming to the market and contributing to the inflation of the next bubble.

Bitcoin’s capitalization rose from $106 billion to $330 billion in a month and a half, but a prolonged decline began the day BTC futures contracts started trading on the CME.

How the CME manipulates the bitcoin exchange rate

Let’s break down what happened during the launch of the first bitcoin futures and what we can expect from the launch of Ethereum contracts.

On December 15, CME launched two BTC futures contracts at $20500, which was the price above the spot market. One contract had a 3-month maturity with an expiration date of March 29, 2018 and the other had a six-month expiration date of June 29.

What do we see on the chart as the result?

Bitcoin collapsed from $20,000 to $12,000 in just the first week of trading. The three-month futures close and the drop was 67% from the peak values. Only after the contracts were expired, there was a rebound to $11,000. And you can find quite a few similar patterns in recent years.

Former CFTC head Christopher Giancarlo said that it was the Trump administration’s decision in 2017 to purposefully approve the launch of BTC futures on the CME Group in order to dramatically lower the bitcoin exchange rate. So as not to repeat the story of the mortgage crisis and this time reacted a little faster to the rising bitcoin.

One year ago we did a big article about this, if you are interested, you can read about it in details. There were many similar coincidences, when new semi-annual and annual contracts were launched, the bitcoin value was always either at the local maximum or at the minimum values, after which the market reversed.

What to expect from the launch of Ethereum futures?

So what can we expect from the launch of Ethereum futures? The same thing we saw with bitcoin. The growth of Ethereum before the start of trading on Chicago stock exchange will attract attention of many investors and then we will see how ETH reacts in the first days of trading and to what degree it will be decompressed when that event starts.

It will be much easier to breakup Ethereum, because of its small capitalization in comparison with bitcoin and other assets, which are traded on CME.

And of course, the scarcity of Ethereum tokens. More than 1.5 million tokens are blocked in Ethereum 2.0 depository contracts, as well as tens of millions are in decentralized financials, and several million more tokens are lost, creating a very significant shortage of ETH tokens right now.

We should also not forget about Grayscale, which increased its Ethereum Trust from 500k to almost 3 million Ethereum tokens in just one year, which is 2.5% of the total number of tokens in circulation.

Technical Analysis

Our friends at DoubleTopTraders also think that we’re in for a rise in Ethereum in terms of technical analysis.

They wrote that now it is best to consider Ethereum to the trading pair to bitcoin (ETH/BTC). On the daily chart, a pinpar was formed, also a triangle with a false break and you can see that Ethereum falsely broke through the msb level (breaking the bearish pattern) and seems to be fixing above it.

If Ethereum should rise to the bitcoin, when, if not now?

  • Entry 0.030100 on the current (14% x3)
  • Stop 0.029476
  • I do not place the tokens, but potentially on the chart 33-39-46-54, in time we will see
  • The risk of 1%.

Trading volumes

Daily bitcoin volumes on CME are from 50K to 100K BTC, that is equivalent to $1-2B, these are net trading volumes, because the exchange is actively controlled by SEC. Of course, these figures are lower than on Binance, but do not forget that the maximum leverage there is 2.5x in contrast to 125x on Binance, and allows a small group of large traders and accredited investors to trade. And the launch of ETH futures will also be well received by traders on the CME.

Results

Soon we will see semi-annual, three-month and even one-year Ethereum futures contracts from the world’s largest exchange. Then institutions will need to hedge their positions and will add options, and in a year or two we will see the long-awaited ETFs for both bitcoin and Ethereum. This is actually a very important step in the development of the cryptocurrency market, when such exchanges start to expand the list of cryptocurrencies and make them available to big investors, which allows big capital to enter the market.

Bitcoin scheitert weiter in der Nähe von USD 24K, XRP sinkt noch mehr

Der Bitcoin-Preis hat es nicht geschafft, die Hürde von 24.000 USD zu überwinden und ist über 1.000 USD gefallen.
Ethereum gab nach und testete 550 USD, XRP steht unter starkem Verkaufsdruck unter 0,300 USD.
DOGE, LINK, QTUM, MIOTA und NEO sind um über 10% gefallen.
Bitcoin überschritt die Widerstandszone von USD 24.000 und begann einen erneuten Rückgang. Der Preis handelte unter dem Unterstützungsniveau von 23.200 USD und kämpft derzeit (05:00 UTC) um eine Erholung.

In ähnlicher Weise gewinnen die meisten wichtigen Altcoins an bärischem Momentum, einschließlich Ethereum, XRP, EOS, XLM, LINK, BNB, XRP, TRX, Bitcoin Loophole, Litecoin und ADA. ETH/USD ist stark unter 590 USD gefallen und hat sogar die Unterstützungszone von 550 USD getestet. Der Zusammenbruch von XRP/USD gewann an Fahrt und der Preis wurde sogar in der Nähe der Unterstützungszone von 0,200 USD gehandelt.

Die gesamte Marktkapitalisierung

Bitcoin-Kurs
Nach einem erneuten Scheitern in der Nähe des Widerstands von USD 24.000 begann der Bitcoin-Preis einen erneuten Rückgang. BTC durchbrach die Unterstützungsniveaus von USD 23.500 und USD 23.200. Er sprang sogar unter USD 23.000 und handelte in der Nähe von USD 22.600. Der Preis konsolidiert derzeit seine Verluste, wobei ein unmittelbarer Widerstand bei 23.200 USD liegt.

Der erste größere Widerstand auf der Aufwärtsseite liegt bei 23.500 USD. Auf der Abwärtsseite befindet sich die erste wichtige Unterstützung bei 22.500 USD. Die nächste wichtige Unterstützung liegt bei 22.250 USD, darunter besteht die Gefahr eines größeren Rückgangs in Richtung 21.500 USD und 21.200 USD.

Ethereum-Preis

Der Ethereum-Preis ist stark unter USD 600 gefallen, nachdem XRP unter USD 0,300 gefallen ist. ETH durchbrach die Unterstützungsniveaus von 595 USD und 580 USD. Er testete die 550-USD-Marke und startete eine ordentliche Erholungswelle. Es gab einen Durchbruch über das Niveau von 570 USD, aber es gibt viele Hürden auf der Oberseite.
Ein erster Widerstand liegt in der Nähe des Niveaus von 588 USD. Der Hauptwiderstand bildet sich nun in der Nähe des Niveaus von 595 USD und 600 USD.

Bitcoin-Cash-, Litecoin- und XRP-Preis

Der Bitcoin-Cash-Preis ist um mehr als 10 % gesunken und handelt jetzt deutlich unter dem Unterstützungsniveau von 300 USD. BCH durchbrach die Unterstützungsniveaus von 285 USD und 280 USD. Der Preis bewegt sich nun näher an das USD 270 Unterstützungsniveau heran. Die nächste wichtige Unterstützung könnte bei USD 250 liegen. Auf der Oberseite sind die Niveaus von 285 USD und 288 USD erste Hürden für die Bullen.

Litecoin (LTC) sprang unter das Unterstützungsniveau von USD 100,00 und testete die USD 95,00-Zone. Er erholt sich derzeit und handelt oberhalb von USD 100,00. Ein erster Widerstand auf der Oberseite liegt in der Nähe des Niveaus von USD 105,00. Der erste größere Widerstand liegt in der Nähe der 110,00 USD-Marke.

Auf der Abwärtsseite könnte der Preis sogar USD 92,00 testen, wenn es einen erneuten Durchbruch unter USD 100,00 gibt.
Der XRP-Preis ist in dieser Woche um über 50 % gefallen und hat viele wichtige Unterstützungen in der Nähe von 0,3500 USD und 0,300 USD durchbrochen. Der Rückgang war so stark, dass XRP sogar in der Nähe des Niveaus von USD 0,200 gehandelt wurde. Er korrigiert derzeit nach oben, aber Aufwärtsbewegungen könnten in der Nähe der 0,300 USD und 0,320 USD begrenzt sein.

Andere altcoins Markt heute
In den letzten Stunden sind viele Altcoins um über 10% gefallen, darunter DOGE, QTUM, MIOTA, LINK, NEO, HBAR, ZEC, RSR, EOS, BAND, VET, ALGO, KNC, YFI, ETC, BNT und XLM.

Insgesamt könnte sich der Bitcoin-Preis weiter nach unten bewegen, wenn es einen klaren Abschluss unter 22.800 USD und 22.500 USD gibt. Umgekehrt könnten die Bullen einen weiteren Versuch unternehmen, die Widerstandsmarken von USD 23.500 und USD 24.000 zu überwinden.

 

Bitcoin alcanza máximos por encima de $ 24k mientras LTC toca $ 120, BCH, BNT el 21 de diciembre

El rally de BTC gana fuerza a medida que Litecoin apunta a máximos de 2019. BCH ve un aumento de reembolso de Square y Bancor se basa en las ganancias de DeFi con la adición de Coinbase.

Bitcoin Profit se recuperó por encima de los $ 20k como predije la semana pasada , y la moneda tocó un máximo de $ 24,300 el domingo.

El mercado de criptomonedas está ligeramente apagado el lunes, ya que los mercados reaccionan a otro ataque de pánico por coronavirus en Europa

Bitcoin había estado subiendo la semana pasada a medida que el dólar estadounidense continuaba siendo golpeado por el tan esperado segundo paquete de estímulo para los Estados Unidos, que se espera que se apruebe más tarde hoy. El trato es por $ 900 mil millones y la población recibe cada uno un cheque de $ 600. El mercado ahora ha fijado un precio para ese acuerdo y el resurgimiento del pánico de virus hace que el dólar suba más de un 1%. Se dice que una nueva cepa de virus encontrada en el Reino Unido es más contagiosa y esto está haciendo que otros países prohíban viajar en vuelos hacia y desde el país, y Francia recorta el 20% de los suministros de alimentos al bloquear el transporte.

Otra ronda de caos en los mercados financieros podría ver el apoyo de Bitcoin, aunque la venta masiva de liquidez de marzo fue una advertencia

BTC se encogió de hombros ante algunas noticias negativas la semana pasada que vieron al regulador financiero FinCEN tratando de meter sus garras en el espacio de las criptomonedas. Una regla propuesta por el Departamento del Tesoro el viernes podría hacer que los titulares de monedas digitales de EE. UU. Tengan que cumplir con los requisitos de conocer a su cliente (KYC) para transferir sus tenencias de intercambios a billeteras personales. Brian Armstrong, director ejecutivo de Coinbase exchange, dijo que la compañía desafiaría las reglas, en un Tweet que fue compartido por el fundador de Litecoin, Charlie Lee.

El fuerte avance de Bitcoin en la última semana significa que la moneda buscará soporte en la cifra de $ 20k y los comerciantes deberían estar atentos a los mercados de valores. Estamos entrando en fin de año cuando las carteras se ajustan antes del nuevo año y los grandes inversores pueden querer obtener ganancias de las valiosas valoraciones del mercado si temen otra ronda de turbulencias por virus en 2021.

El mercado general de criptomonedas ahora es de $ 662 mil millones y BTC es responsable del 66% de esa cifra.

US Treasury Department presents controversial bill for “wallet ban”

The planned changes to the law are likely to have less dramatic effects on the crypto industry than previously feared.

The US Treasury Department has presented its new bill to regulate financial services, which would prohibit US-registered crypto exchanges from interacting with self-managed crypto wallets

In a corresponding announcement on Friday evening, the Department for Combating Financial Crime (FinCEN) presented the planned changes to the law that would force crypto exchanges to “obtain and confirm the identity of their customers if the counterparty involved in a transaction uses a self-managed wallet and the transaction is greater than $ 3,000 „.

Initially, this is only a draft, with the Ministry of Finance giving all parties who would be affected by such a law 15 days to comment

The first rumors of such a bill had already surfaced last month . The outgoing Finance Minister Steven Mnuchin was accused of wanting to significantly influence crypto regulation before the end of his term in office. In the announcement he writes:

“This bill addresses some aspects of the digital currency market that pose a threat to our national security. We want to close these security loopholes that attackers could misuse for their own purposes.“

However, several influential politicians have already spoken out against the bill, which many see as a fundamental attack on peer-to-peer (P2P) transactions. However, since there is no explicit legal regulation for these, the Ministry of Finance has great influence here.

However, the bill is far less bad than many feared beforehand. Rather, existing regulations for transactions, which concern the collection of customer information from US $ 3,000, would only be extended to all registered crypto companies that interact with self-managed wallets.

LayerX develops blockchain voting system with digital identity verification in Japan

„Voting over the Internet brings more challenges with it. You have to prevent double voting and solve the difficulties with the technical hurdles to keeping the ballot papers secret and with the costs of voting machines.“

The Japanese company Layer X wants to team up with the digital identity application xID to develop a blockchain-based voting system in the Japanese city of Kaga

In an announcement by LayerX on Thursday, the Tokyo-based company said it plans to develop electronic voting to ensure safe elections for the city’s 68,000 residents. The company said the cost and stability of current electronic voting systems in the region was a problem that needed to be addressed.

„Voting over the Internet brings with it more challenges. You have to prevent a double vote and solve the difficulties with the technical hurdles to the secrecy of the ballot papers and with the costs of the voting machines,“ said the company’s announcement. „Bitcoin Storm scam researched and developed an electronic voting protocol that strikes a balance between the transparency of the voting process and the confidentiality of the voting.“

According to the company, the xID application will strengthen the company’s existing voting system and help verify the voter’s identity

It also ensures that only one voting slip per person is issued. LayerX’s system enables voters to check their own election results . In addition, a cryptographic function is built in with which one can independently verify that the recording and aggregation processes have been carried out correctly with a certain choice in the blockchain network.

Kaga was the first city in Japan to declare itself a „blockchain city“. The initiative was intended to counteract the population decline in rural areas of the country. Companies in the public and private sector are to be encouraged to use innovative technologies . LayerX made a similar announcement in November. The company announced at the time that it wanted to join Tsukuba City’s „Smart City“ initiative.