Reminder!! - The HUGE CME Bitcoin Futures Trading Platform Goes Live Tonight! 5 pm CST!! | Shocking the Statism Outta Wall St.
Bitcoin futures start trading on the CME today- 12/17th and began trading on the CBOE last Sunday as many of us had written about here.
TLDR:
As I blogged about 2 weeks ago right here - the CBOE exchange went live a week ago TODAY at 6 pm- last Sunday.
We saw yet another massive week of volatility in the crypto space this week, huge gains and losses and swings for all coins, in all directions pretty much.
Judging by the volatility in the last 18 hours of trading already, we might have an idea of what is to come...
Ahead of the launch the market is actually twice as stable as last week regarding swings/volatility.
-- Those are swings in the last ~24 hours alone from $19,045 to $20,089.00 USD. A swing of $1000 - while last week at this time, before the CBOE launch - the same 18-24 hours before launch showed swings of $2600.
Ha, even the crypto volatility is likely to shock the statism right out of some of the Wall St. traders.
(:
BTC has again hit another new ATH of $20,089.00 at 12:19 UTC today / 7:19 EST.
Bitcoin (BTC) has appreciated by 10 percent in the last 24 hours as per CoinMarketCap.com - 1 year ago, it traded below $1,000 USD as I have said many times, for perspective.
CME’s version is likely to make a bigger impact because the company is much bigger in futures than Cboe, handling ~55x more volume during the first 9 months of 2017, according to the Futures Industry Association.
So far in their 1 week up - CBOE has traded more than 10,000 contracts representing about $180 million in bitcoin, data compiled by Bloomberg shows.
The chart above (prices as per Coinbase) shows:
Bull flag breakout on Dec. 10 and a bullish follow-through
Rounding bottom pattern along the rising trend line and a bullish break above $18,000
So, the cryptocurrency might come under pressure this week due to "sell the news" trading following the futures listing on the CME. Also, the prices chart analysis says there is merit in being cautiously bullish on the cryptocurrency.
Clearly, the bulls are in control and could take prices well above the $20,000 mark. Comments on social media show a significant portion of the investor community is expecting the cryptocurrency to test $24,000 in the short-run.
Info courtesy CoinDesk current as of today, Dec. 17th, 2017.
Overview/Links/Ticker:
-- Investors and speculators are interested in what will happen when the derivatives products launch, because at the moment there are no open standards for this type of cryptocurrency-based investment vehicle apart from the CBOE market launched a week agao / before the CME.
There are a few differences with the futures contracts:
- Reminder - the CME aggregates pricing from 4 exchanges, vs. 1 for CBOE.
-- CBOE 1 contract = 1 BTC.
-- CME 1 contract = 5 BTC.
-- Margin rates for the CBOE is 44% so based on a price of $20000 you would need to put up $8800.
-- The CME has a bit of a higher requirement at 47% however the big difference is the number of BTC per contract. One contract based on 5 BTC at 20000 would have a margin requirement of $47000.
The CME futures will have a much higher barrier to entry for those looking to get in on BTC futures.
If you own less than 5 bitcoins and want to hedge your position than the CBOE would be your best bet. The CME futures market is for those with more than 5 bitcoin and have deeper wallets. The leverage of 5 to 1 will keep the smaller investors away from trading futures on the CME.
The similarities with these contracts is that they are cash settled, so investors don't take physical delivery of the BTC.
With the cash settled contracts bitcoin futures may be subject to more price manipulation.
--
-- To protect against wide, crazy price swings, CME will briefly pause trading if the contracts rise or fall 7 % or 13 %, and prices won’t be allowed to move more than 20 %. Cboe also has volatility halts, which were triggered in the early hours of trading a week ago, and its Jan. contract rose as much as 26 % on that first day.
-- CME Globex and CME ClearPort: 5:00 p.m. – 4:00 p.m. CT Sunday – Friday
-- In Order to Purchase Bitcoin-Based Futures, You Must to Contact a Brokerage Firm.
-- People and organizations will have to contact their brokerage firm to purchase XBT / BTC Futures contracts. However, at the moment many financial institutions are not quite ready to take on the task of selling these futures. Institutional clients can purchase XBT from more prominent brokerage firms like Goldman Sachs and JP Morgan. However, these companies will only offer bitcoin futures to a particular group of customers at the moment.
It’s fairly regular practice for a brokerage to impose larger requirements than the exchange. Interactive Brokers Group Inc., stated it handled 53 % of the first day’s trading in Cboe’s XBT futures, and they will require a margin of 50% for long investments, & about 240 percent for short selling, (based on current rates), Interactive Brokers spokeswoman Kalen Holliday said in a statement.
-- Spot Position Limits are set at 1,000 contracts. A position accountability level of 5,000 contracts will be applied to positions in single months outside the spot month and in all months combined.
-- Price limits for a given Business Day are made by reference to the most recent Bitcoin Futures settlement price, settled at 3:00 p.m. Central time each Business Day.
-- Special price fluctuation limits equal to 7% above and below prior settlement price and 13% above and below prior settlement price and a price limit of 20% above or below the previous settlement price. Trading will not be permitted outside the 20% above and below prior settlement price. (as covered above / This is directly from the CME Group)
-- Daily settlement price determination:
Daily settlement will be based on the volume-weighted average price (VWAP) of CME Globex trades between 2:59:00 p.m. and 3:00:00 p.m. CENTRAL Time rounded to the nearest tradable tick.
-- Bitcoin futures final settlement price be determined?
The final settlement value will be based on the CME CF Bitcoin Reference Rate (BRR) at 4:00 p.m. London time on the expiration day of the futures contract.
CME Link to Bitcoin Futures Info, Tickers, etc.
CME Group FAQ Link: http://www.cmegroup.com/education/cme-bitcoin-futures-frequently-asked-questions.html
http://www.cmegroup.com/trading/equity-index/us-index/bitcoin.html
CBOE Link to Bitcoin Futures Info, Tickers, etc.
http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures
--
CNBC Ticker Link: https://www.cnbc.com/quotes/?symbol=BTC.CB=
The CNBC ticker tracks the USD price via Coinbase -- NOT the Gemini Exchange in NYC that tracks the CBOE Futures price, remember that!!
Main Info Source
Thanks for reading, have a nice day.
My Philosophy In Daily Life & Travels:
I have always tried to be kind to people every day, as part of my life Philosophy, since I have always believed we can achieve more TOGETHER.
My path to Crypto is with you guys and we are on the path to Liberty.
We are all early adopters here, if you are even close to reading this today.
Be encouraged.
If you online search my name + PIZZA -- you will see my deep love of the pie as I seek to eat it, wherever I am, or whatever I am doing.
Life Goals:
-- Get Paid to Travel and Blog about Pizza & Those Travels.
-- Buy a Pizza Store.
-- Become Crypto Currency Independent and Love Liberty and Life!
-- Continue to Hold and Sell Real Estate as I have done for clients since 1991.
Don't let anyone tell you twins are a problem ever!!!!!
FUD or no FUD!!!
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/bitcoin/@barrydutton/cryptocurrency-on-hodl-what-are-you-hodl-g-today-6
Most stock Images / Gif's day to day- usually via Giphy.com , Funny or Die.com, Imgur.com, PixaBay unless otherwise noted, with thanks.
Sources usually on image or credited if I cannot find it on an image, but sometimes I forget, sorry if this bothers anyone.
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
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EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
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Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
Bitcoin futures start trading on the CME today- 12/17th and began trading on the CBOE last Sunday as many of us had written about here.
TLDR:
As I blogged about 2 weeks ago right here - the CBOE exchange went live a week ago TODAY at 6 pm- last Sunday.
We saw yet another massive week of volatility in the crypto space this week, huge gains and losses and swings for all coins, in all directions pretty much.
Judging by the volatility in the last 18 hours of trading already, we might have an idea of what is to come...
Ahead of the launch the market is actually twice as stable as last week regarding swings/volatility.
-- Those are swings in the last ~24 hours alone from $19,045 to $20,089.00 USD. A swing of $1000 - while last week at this time, before the CBOE launch - the same 18-24 hours before launch showed swings of $2600.
Ha, even the crypto volatility is likely to shock the statism right out of some of the Wall St. traders.
(:
BTC has again hit another new ATH of $20,089.00 at 12:19 UTC today / 7:19 EST.
Bitcoin (BTC) has appreciated by 10 percent in the last 24 hours as per CoinMarketCap.com - 1 year ago, it traded below $1,000 USD as I have said many times, for perspective.
CME’s version is likely to make a bigger impact because the company is much bigger in futures than Cboe, handling ~55x more volume during the first 9 months of 2017, according to the Futures Industry Association.
So far in their 1 week up - CBOE has traded more than 10,000 contracts representing about $180 million in bitcoin, data compiled by Bloomberg shows.
The chart above (prices as per Coinbase) shows:
Bull flag breakout on Dec. 10 and a bullish follow-through
Rounding bottom pattern along the rising trend line and a bullish break above $18,000
So, the cryptocurrency might come under pressure this week due to "sell the news" trading following the futures listing on the CME. Also, the prices chart analysis says there is merit in being cautiously bullish on the cryptocurrency.
Clearly, the bulls are in control and could take prices well above the $20,000 mark. Comments on social media show a significant portion of the investor community is expecting the cryptocurrency to test $24,000 in the short-run.
Info courtesy CoinDesk current as of today, Dec. 17th, 2017.
Overview/Links/Ticker:
-- Investors and speculators are interested in what will happen when the derivatives products launch, because at the moment there are no open standards for this type of cryptocurrency-based investment vehicle apart from the CBOE market launched a week agao / before the CME.
There are a few differences with the futures contracts:
- Reminder - the CME aggregates pricing from 4 exchanges, vs. 1 for CBOE.
-- CBOE 1 contract = 1 BTC.
-- CME 1 contract = 5 BTC.
-- Margin rates for the CBOE is 44% so based on a price of $20000 you would need to put up $8800.
-- The CME has a bit of a higher requirement at 47% however the big difference is the number of BTC per contract. One contract based on 5 BTC at 20000 would have a margin requirement of $47000.
The CME futures will have a much higher barrier to entry for those looking to get in on BTC futures.
If you own less than 5 bitcoins and want to hedge your position than the CBOE would be your best bet. The CME futures market is for those with more than 5 bitcoin and have deeper wallets. The leverage of 5 to 1 will keep the smaller investors away from trading futures on the CME.
The similarities with these contracts is that they are cash settled, so investors don't take physical delivery of the BTC.
With the cash settled contracts bitcoin futures may be subject to more price manipulation.
--
-- To protect against wide, crazy price swings, CME will briefly pause trading if the contracts rise or fall 7 % or 13 %, and prices won’t be allowed to move more than 20 %. Cboe also has volatility halts, which were triggered in the early hours of trading a week ago, and its Jan. contract rose as much as 26 % on that first day.
-- CME Globex and CME ClearPort: 5:00 p.m. – 4:00 p.m. CT Sunday – Friday
-- In Order to Purchase Bitcoin-Based Futures, You Must to Contact a Brokerage Firm.
-- People and organizations will have to contact their brokerage firm to purchase XBT / BTC Futures contracts. However, at the moment many financial institutions are not quite ready to take on the task of selling these futures. Institutional clients can purchase XBT from more prominent brokerage firms like Goldman Sachs and JP Morgan. However, these companies will only offer bitcoin futures to a particular group of customers at the moment.
It’s fairly regular practice for a brokerage to impose larger requirements than the exchange. Interactive Brokers Group Inc., stated it handled 53 % of the first day’s trading in Cboe’s XBT futures, and they will require a margin of 50% for long investments, & about 240 percent for short selling, (based on current rates), Interactive Brokers spokeswoman Kalen Holliday said in a statement.
-- Spot Position Limits are set at 1,000 contracts. A position accountability level of 5,000 contracts will be applied to positions in single months outside the spot month and in all months combined.
-- Price limits for a given Business Day are made by reference to the most recent Bitcoin Futures settlement price, settled at 3:00 p.m. Central time each Business Day.
-- Special price fluctuation limits equal to 7% above and below prior settlement price and 13% above and below prior settlement price and a price limit of 20% above or below the previous settlement price. Trading will not be permitted outside the 20% above and below prior settlement price. (as covered above / This is directly from the CME Group)
-- Daily settlement price determination:
Daily settlement will be based on the volume-weighted average price (VWAP) of CME Globex trades between 2:59:00 p.m. and 3:00:00 p.m. CENTRAL Time rounded to the nearest tradable tick.
-- Bitcoin futures final settlement price be determined?
The final settlement value will be based on the CME CF Bitcoin Reference Rate (BRR) at 4:00 p.m. London time on the expiration day of the futures contract.
CME Link to Bitcoin Futures Info, Tickers, etc.
CME Group FAQ Link: http://www.cmegroup.com/education/cme-bitcoin-futures-frequently-asked-questions.html
http://www.cmegroup.com/trading/equity-index/us-index/bitcoin.html
CBOE Link to Bitcoin Futures Info, Tickers, etc.
http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures
--
CNBC Ticker Link: https://www.cnbc.com/quotes/?symbol=BTC.CB=
The CNBC ticker tracks the USD price via Coinbase -- NOT the Gemini Exchange in NYC that tracks the CBOE Futures price, remember that!!
Main Info Source
Thanks for reading, have a nice day.
My Philosophy In Daily Life & Travels:
I have always tried to be kind to people every day, as part of my life Philosophy, since I have always believed we can achieve more TOGETHER.
My path to Crypto is with you guys and we are on the path to Liberty.
We are all early adopters here, if you are even close to reading this today.
Be encouraged.
If you online search my name + PIZZA -- you will see my deep love of the pie as I seek to eat it, wherever I am, or whatever I am doing.
Life Goals:
-- Get Paid to Travel and Blog about Pizza & Those Travels.
-- Buy a Pizza Store.
-- Become Crypto Currency Independent and Love Liberty and Life!
-- Continue to Hold and Sell Real Estate as I have done for clients since 1991.
Don't let anyone tell you twins are a problem ever!!!!!
FUD or no FUD!!!
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/bitcoin/@barrydutton/cryptocurrency-on-hodl-what-are-you-hodl-g-today-6
Most stock Images / Gif's day to day- usually via Giphy.com , Funny or Die.com, Imgur.com, PixaBay unless otherwise noted, with thanks.
Sources usually on image or credited if I cannot find it on an image, but sometimes I forget, sorry if this bothers anyone.
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
Oh boy...lets see how this plays out. Everyone seems to be talking about Bitcoin now. Amazing how public perception changed once BTC crossed that $10K mark.
Mass media coverage and lies are so commonplace they are not much good usually but in this case....
the more coverage this stuff gets, good or bad really keeps it in the public view and people will source further info on their own, even though the police state and big data funnels, watches and controls nearly everything now.
It will help.
In many ways.
It helps legitimize crypto and a simple BTC search will yield a LOT of other info - coins - facts, ideas etc.
Actually you have not seen this volatility in the market, great concerns for traders
It is a human being who is taking advantage of opportunities
The futures market is a market of speculators that can play both to raise prices and to lower. You've got to be ready for anything
And there will be derivatives on derivatives on derivatives on bitcoin
It was a rather safe long for CBOE, history will probably repeat again in couple of hours. Whats ur call mate?
It's the wild west of crypto and Christmas....
-- anything can and likely will continue to happen.
LOL
My analysis of the chart last week and same this week was very interesting I thought, huge ATH's again but less volatility and swings there, documented in BTC charts 7 days apart with 2 major futures exchanges launching the BTC.
Awesome. Thanks for the reminder. Upvoted and resteemed.
TY for the support, get the info out there!
While I think futures are great to bring money and attention to the crypto space I still think the best way to invest is building a diverse cryptfolio through strong research and patience.
I basically feel the same...
Mass media coverage and lies are so commonplace they are not much good usually but in this case....
the more coverage this stuff gets, good or bad really keeps it in the public view and people will source further info on their own, even though the police state and big data funnels, watches and controls nearly everything now.
It will help.
In many ways.
It helps legitimize crypto and a simple BTC search will yield a LOT of other info - coins - facts, ideas etc.
Existing! I can’t wait to see how main stream media try’s to downplay this one.
I had to say this a couple times, I hate pasting my own replies but nobody will see my thoughts sometimes and I am not gonna type the same decent stuff out 3 or 5x LOL
--
Mass media coverage and lies are so commonplace they are not much good usually but in this case....
the more coverage this stuff gets, good or bad really keeps it in the public view and people will source further info on their own, even though the police state and big data funnels, watches and controls nearly everything now.
It will help.
In many ways.
It helps legitimize crypto and a simple BTC search will yield a LOT of other info - coins - facts, ideas etc.
--
https://twitter.com/BarryDutton/status/942525948678766594