CME Group saves the day as their bitcoin options platform launch caused Bitcoin to surge $600 at the time of writing, breaking a major resistance point at $8,200. The platform itself saw more than $2.3 million in trading volume after its first day.
The platform received regulatory approval on Monday morning and went live shortly after. By the end of the day, 55 Bitcoin options contracts were traded. The event marks the first time that Bitcoin pumped as a result of a crypto derivatives platform launch, given the fact that the price of Bitcoin took heavy tolls following Bakkt in 2019 and CME Bitcoin futures in 2017.
Successful launch turns out bullish for Bitcoin
According to the exchange’s official website, each contract is worth 5 BTC. At the moment, the contracts are worth $2,34 million in total. Moreover, the successful launch resulted in almost an 8% surge which indicates a major trend reversal as Bitcoin is close to reaching $9,000.
As a reminder, the current price range was last present in November 2019 after which Bitcoin traded around $7,500 for an entire month. The sector was revived numerous times, mainly at the start of January when geopolitical tension between the U.S. and Iran caused Bitcoin to bounce from $6,900 on Jan 3. Afterwards, Iranian airstrikes on U.S. bases in Iraq revived Bitcoin’s ‘digital gold’ narrative, pushing it to $8,200.
While it is still a mystery whether the bear market is finally over, investors are delighted by the ongoing mini bull run. Since reaching $14,000 in June last year, Bitcoin started to slowly lose its value before reaching a ‘bottom’ of around $6,600 in December.
FTX launched the same platform days before CME Bitcoin options
Cryptocurrency derivatives trading saw a sharp rise in January with several options releases. On Jan 11, crypto exchange FTX launched its own Bitcoin options and reached $1 million in trading volume after only two hours. According to official data from the exchange, options trading reached $30.8 million in trading volume in the past day.
As CryptoPythia reported on Jan 11, a group of analysts from JPMorgan predicted the Bitcoin move after spotting an ‘unusually strong activity’ of futures trading prior to CME’s options. Interestingly enough, bitcoin dropped around $6,500 four days after CME launched bitcoin futures trading in December 2017.