CME Group launches Bitcoin options on futures

The Explosion In This One Metric Is Bullish for Bitcoin’s Price

On Jan. 14, Tim McCourt, a managing director at CME Group and the global head of equity products, said that the company launched options on bitcoin futures McCourt noted that he is satisfied with the growth of its Bitcoin derivatives products, demonstrating a substantial increase in open interest since January 18.

CME holds a massive dominance compared to Bakkt in trading bitcoin futures on regulated exchanges.

"This unusually strong activity over the past few days likely reflects the high anticipation among market participants of the option contract".

Going by the report, the issuance of Bitcoin contracts has been unstable in terms of performance considering the past record. When ICE debuted its physically settled futures contracts, Bakkt in September the prices fell that time too.


On Tuesday (January 14), which coincides with "New Year's Day" (better known as "Old New Year") according to the Russian Orthodox Church (which uses the Julian calendar), Bitcoin celebrated by surging 5.5% to $8,551, which is the highest level it has been since 14 November 2019.

The below chart - which shows what trends in an asset's volume, open interest, and price means for said asset's future trajectory - indicates that the most optimistic scenario for any market is if the asset's price, volume, and open interest for its futures market rise in tandem, suggesting "strength", "bullish" price action, and an overall trend of prices rising.

JP Morgan calculated the inherent value of Bitcoin by valuing it as a commodity and looking at the marginal cost of production, including the computational mining power that it takes and the electrical energy it consumes.

"The market price has declined by almost 40 per cent from its peak while the intrinsic value has risen by around 10 per cent", Panigirtzoglou wrote. Nevertheless, the leading Bitcoin futures platform did manage to deliver the product on the said date, January 13, 2020. We hope that we have succeeded by giving you the full details and information.

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