CME Bitcoin futures opened with an insane gap after one of the ugliest Bitcoin price daily candles on record
Bitcoin futures offered by CME Group recorded the biggest spread to date of over $ 3,000. After opening almost 12% higher, their trade was temporarily halted at the opening due to strong volatility. In another development, Bitcoin price is trading around $ 27,126, up more than 14% over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
CME Bitcoin futures opened with an insane gap after one of the ugliest Bitcoin price daily candles on record
Last month, CME overtook the OKEx exchange due to a growing interest in institutions, becoming the largest futures market for the world’s number one cryptocurrency. In February 2021, the exchange is expected to launch the Ethereum futures contract.
Is it a bird, is it a plane? No, it’s Bitcoin futures CME halting because of biggest gap ever. pic.twitter.com/SUgzowKsTE
— zender ?⬛ Taproot by BIP8 (@zndtoshi) December 27, 2020
While the Bitcoin market is open 24/7, CME futures markets are closed over the weekend. This creates gaps widely followed by cryptocurrency traders as they often get filled soon. The most recent gap could be much larger if Bitcoin tries to hold on to its recent gain.
Bitcoin quickly hit $ 28,000 before dropping to $ 25,782 within 24 hours. This is arguably one of the ugliest daily candles ever.
According to Skew analytics, there has been no spike in interest from retail markets during this Bitcoin rally. Bitcoin has been dominating markets and the capital inflow has not come from retail traders, it has come from institutions.
and institutions are embracing #bitcoin pic.twitter.com/v9jN3iYClY
— skew (@skewdotcom) December 27, 2020
Analyst Josh Rager does not think there will be much retail attention until prices climb much higher than current levels:
“Personally, don’t think retail will pay attention to Bitcoin until the next big psychological price point $50,000. Besides one friend who asked near $20k – I don’t know of any other no-coiners talking about Bitcoin. We’re still far from the top.”
There is also the notion that many retail traders may be more cash strapped this time around due to the economic fallout of the Covid-19 pandemic.
The next chart posted by Skew shows the Grayscale Bitcoin Trust as an example of institutional domination. Since the same time last year, the institutional-grade fund has surged by around 450% in terms of assets under management which currently stands at $16.3 billion according to its last tweet.
You can see the BTC price here.
Read more:
- The Bitcoin Rally Seemingly Has No Breaks As Bitcoin Price Breaks Above Yet Another Major Milestone At $ 28.000
- Bitcoin Price Set A New Record In 2020 And Is Expected To Continue To Rise Even Higher