News
Bitcoin takes center stage as CME plans to offer spot trading in the cryptocurrency
Key points
- Bitcoin is in the spotlight 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 will operate the spot trading business through the EBS currency trading venue in Switzerland, a platform that has specific regulations related to cryptocurrency trading and storage.
- An upward move from current levels could see Bitcoin make another attempt to reach 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 term around 52,500 dollars.
Bitcoin (Bitcoin), the largest cryptocurrency in market capitalizationremains in focus Thursday morning after the Financial Times reported that futures exchange CME Group (ECM) plans to launch stain Bitcoin trading. The news comes a day after the digital asset recorded its best daily performance since March 25, following a weaker-than-expected performance. inflation data.
Under the proposed plan, Chicago-based CME will operate the spot trading business through the EBS currency trading venue in Switzerland, a platform that has comprehensive trading-related regulations and storage of cryptographic assetspeople with direct knowledge of the talks told the FT.
CME, which already offers a range of Bitcoin and Ether derivative products, he discussed with traders who want to trade cryptocurrencies through a regulated market, the sources said, although they noted that no deal had been finalized.
The move would allow investors to execute more complex Bitcoin trading strategies involving both spot and futures markets, such as basic operations. They work by borrowing money to sell futures while buying the underlying spot asset and profiting from the spread differential between the two.
The news of the CME offering Bitcoin spot trading comes after the cryptocurrency gained more than 7% on Wednesday after being weaker than expected consumer price index (CPI) The data eased concerns that persistent inflation could scupper interest rate cuts planned later this year. Bitcoin, like other risk assets, remains highly sensitive to rate movements as high yields make assets safer, such as United States Treasurymore attractive to investors.
Monitor these price levels for a close above the 50 day moving average
Bitcoin price has struggled to gain upward momentum since plunging from to symmetrical triangle in early April, with investors promptly selling on bucking rallies over the past month. However, Monday’s rally, which occurred on the highest trading volume in two weeks, could once again favor the bulls. Coinbasesaw the legacy cryptocurrency close higher than the closely watched one 50-day moving average (MA).
Looking ahead, an upward move from these levels could set the stage for another attempt by Bitcoin to reach its all-time high of $73,835.57 (ATH) set in March this year, while the failure to hold at above the 50-day moving average could see the bears regain. control and the price drops in the long term support approximately $52,500.
Bitcoin was trading at around $66,400 as of 8:30 a.m. ET.
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