{"id":21772,"date":"2023-08-31T18:22:59","date_gmt":"2023-08-31T18:22:59","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/cme-bitcoin-trading-volume-surpasses-bybit-but-is-it-impacting-btc-price\/"},"modified":"2023-08-31T18:23:01","modified_gmt":"2023-08-31T18:23:01","slug":"cme-bitcoin-trading-volume-surpasses-bybit-but-is-it-impacting-btc-price","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/cme-bitcoin-trading-volume-surpasses-bybit-but-is-it-impacting-btc-price\/","title":{"rendered":"CME Bitcoin trading volume surpasses Bybit, but is it impacting BTC price?"},"content":{"rendered":"
The Chicago Mercantile Exchange (CME) introduced its Bitcoin (BTC) futures contract in December 2017. This was around the same time that BTC had reached an all-time high of $19,800, but by late 2018 the price had dropped to $3,100. Investors in cryptocurrencies quickly learned that CME derivative contracts allowed them to make bullish bets with leverage, but also enabled them to bet against the price, a practice known as shorting.<\/p>\n
Historically, the Securities and Exchange Commission (SEC) has rejected Bitcoin exchange-traded fund (ETF) proposals due to concerns about manipulation on unregulated exchanges. The growing significance of CME’s Bitcoin futures market might address this issue and recently, Hashdex has even requested a Bitcoin ETF that relies on Bitcoin’s physical trades within the CME market.<\/p>\n
Professional traders often use BTC derivatives to hedge risks. For instance, one can sell futures contracts while simultaneously buying BTC using borrowed stablecoins using margin. Other examples include selling longer-term BTC futures contracts while purchasing perpetual contracts could help benefit from price discrepancies over time.<\/p>\n
CME has played a key role in the Bitcoin futures market since 2020, amassing an impressive $5.45 billion open interest by October 2021. However, over the following years, the gap widened as CME’s Bitcoin futures market reached $1.2 billion in January 2023, trailing behind exchanges like Binance, OKX, Bybit and Bitget.<\/p>\n
More recently, Bitcoin price dropped by 12.8% between Aug.16 and Aug. 17, leading to a $2.4 billion reduction in the aggregate futures open interest. Notably, CME was the only exchange unaffected in terms of open interest. As a result, CME became the second-largest trading platform on Aug. 17, with a $2.24 billion BTC open interest, according to data from Coinglass.<\/p>\n