CME

Bitcoin price rally to $42K driven by spot volumes, not BTC futures liquidations

Bitcoin futures data counters the assumption that BTC’s rally to $42,000 was primarily propelled by shorts liquidations. What is next for BTC?

In the past seven days, Bitcoin (BTC) experienced a whopping 14.5% surge, hitting a 20-month high at $41,130 by Dec.

The impact of the recent liquidations in Bitcoin futures markets

While the Chicago Mercantile Exchange (CME) trades USD-settled contracts for Bitcoin futures, where no physical Bitcoin changes hands, these futures markets undoubtedly play a crucial role in shaping spot prices.

In the same seven-day period, a mere $200 million worth of BTC futures shorts were liquidated, representing only 1% of the total outstanding contracts.

Bitcoin futures aggregate open interest and volume, USD. Source: Coinglass

Even when focusing solely on the CME, which is known for potential trading volume inflation, its daily volume of $2.67 billion should have readily absorbed a $100 million 24-hour liquidation.

One could attempt to gauge the extent of liquidations at different price levels using tape reading techniques.

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CME Group to expand Bitcoin and Ether option expiries after record daily volume

The CME Group aims to offer market participants more accuracy and flexibility in managing the risk of short-term fluctuations in the prices of Bitcoin and Ether.

On April 17, derivatives marketplace Chicago Mercantile Exchange (CME) Group announced it would broaden its range of cryptocurrency options by adding new options to its standard and micro-sized Bitcoin (BTC) and Ether (ETH) contracts. Pending regulatory review, these new contracts will be available from May 22, and expiries will be available every day of the business week from Monday to Friday. 

According to the announcement, CME Group’s expanded suite of cryptocurrency options will include new expiry dates for Bitcoin and Ether futures contracts. These options will now expire every day from Monday to Friday, providing traders with greater flexibility to manage short-term price risks. Furthermore, options on micro-sized Bitcoin and Ether futures contracts will add Tuesday and Thursday expiries to their existing Monday, Wednesday and Friday contracts. The newly added expiries will complement the existing monthly and quarterly expiries that are already available across all Bitcoin and Ether options on futures contracts.

The move, according to CME Group, is aimed at providing market participants with greater precision and versatility in managing short-term Bitcoin and Ether price risk. It also comes at a time of heightened market volatility in the digital asset sector.

CME Group’s Bitcoin and Ether futures and options complex has already achieved a record daily average notional of more than $3 billion through Q1 2023. This signifies an increase in client demand for liquid hedging tools. The complex achieved other trading highlights as well, including a record 11,500 contracts and open interest, with a record average of 24,094 contracts for Bitcoin futures and options in Q1 2023. In addition, CME Group’s Bitcoin and Ether futures and options have a surge in trading volumes, with a record 2,357 Bitcoin options contracts traded on March 22 and a record open interest (OI) of 14,700 contracts on March 31. 

Related: Bitcoin sparks liquidations as analyst says BTC price may dip 12% more

CME Group introduced its first BTC futures contract in December 2017, followed by an ETH futures contract in February 2021. To cater to the increasing demand for cryptocurrency investment options, the exchange expanded its offerings in 2022 to include micro BTC and ETH futures. Additionally, it launched euro-denominated BTC and ETH futures when the euro was trading at parity with the United Statesdollar, which is currently worth around $1 per euro at the time of writing.

As at the time of publication, the price of ETH is at $2,085 and the price of BTC is at $29,503, falling below its previous high of $30,000. 

Magazine: Toss in your job and make $300K working for a DAO? Here’s how

CME Group to launch 3 metaverse reference rates

Axie Infinity, Chiliz and Decentraland will be represented in CME’s new reference rates and real-time indexes.

Derivatives marketplace CME Group is planning to launch reference rates and real-time indexes for three metaverse crypto assets, allowing investors to track pricing data more reliably using a methodology commonly used in traditional finance. 

Beginning Jan. 30, CME Group and CF Benchmarks will launch reference rates for Axie Infinity Shards (AXS), Chiliz (CHZ) and Decentraland’s MANA (MANA), the company announced on Jan. 5. The reference rates and indexes are not tradeable products but instead can be used by investors to “price sector-specific portfolios, develop structured products […] and manage price risk around various Metaverse-based projects,” said Giovanni Vicioso, CME Group’s head of cryptocurrency products.

The reference rates and real-time indexes for AXS, CHZ and MANA will be calculated using pricing data from at least two crypto exchanges, including Bitstamp, Coinbase, Kraken, itBit and LMAX Digital. The assets’ reference rates will be priced in U.S. dollars and published daily at 4:00 pm GMT. Each real-time index will be published every second of every day.

Chiliz, the largest of the aforementioned metaverse plays, currently has a market capitalization of $742.1 million, according to CoinMarketCap. AXS has a market cap of $686.5 million, and MANA is worth roughly $597.2 million.

CME Group has been active on the crypto scene, launching micro-sized Bitcoin (BTC) and Ether (ETH) options last year. The derivatives marketplace also launched euro-denominated BTC and ETH options for institutional investors outside the United States.

Related: An overview of the metaverse in 2022

Metaverse tokens exploded in popularity during the previous crypto bull market as dozens of projects promised to create virtual versions of the real world. Recognizing this potential opportunity, Mark Zuckerberg’s Facebook rebranded to Meta in October 2021. Meta’s metaverse division has been hemorrhaging money since its inception, underscoring the difficulties of creating commercially viable products in the new virtual world.

3 ways crypto derivatives could evolve and impact the market in 2023

Derivatives played a major role in the last bull market and it’s highly likely that they will be integral in the market’s evolution in 2023.

Futures and options let traders put down only a tiny portion of a trade’s value and bet that prices will go up or down to a certain point within a certain period. It can make traders’ profits bigger because they can borrow more money to add to their positions, but it can also boost their losses much if the market moves against them.

Even though the market for crypto derivatives is growing, the instruments and infrastructure that support it are not as developed as those in traditional financial markets.

Next year will be the year that crypto derivatives reach a new level of growth and market maturity because the infrastructure has been built and improved this year, and an increasing number of institutions are getting involved.

Crypto derivatives’ growth in 2023

In 2023, the volume of crypto derivatives will continue to grow because of two factors: first, the growth of relevant infrastructure such as applications for decentralized finance (DeFi) and also because of more professional and transparent intermediaries planning to enter the space. Eventually, this will lead to more institutions getting involved.

Understanding why traditional financial institutions use derivatives more than traditional spot markets is an excellent way to learn more about the market.

Some reasons for the growth are the ability to leverage capital, the fact that derivatives contracts in the U.S. are treated as long-term capital gains for tax purposes, and for their use in hedging, which is the ability to protect against unexpected price swings.

When more institutions get involved, relative volatility decreases, making trading derivatives a better use of capital. Also, as more institutions add crypto assets to their balance sheets, derivative instruments will become a critical tool for protecting against short-term volatility.

The industry is still in its early stages

Like 2022, 2023 is also bound to be a unique year for crypto derivatives. There’ll be a rise inboth centralized and decentralized options infrastructure and the continued development of new crypto primitives like structured vaults, everlasting options and experiments with derivatives.

The cryptocurrency industry is moving deeper into regulated markets as it tries to get more users and competes with existing traditional finance companies like brokerages that already let people trade stocks and other financial assets.

Most derivatives deals happen on Binance, OKX and Bybit, which are based outside of the U.S. and are not regulated. However, based on data from CoinGlass, CME Group is the only regulated U.S. market that has gained traction.

In November 2022, it was responsible for about 10.7% of the open interest in Bitcoin (BTC) and Ether (ETH) futures.

Big firms buying will continue buying small licensed derivatives operations

It’s getting harder to tell where retail markets end and institutional markets begin. The retail-focused businesses that crypto exchanges bought are run by some of Wall Street’s biggest and most experienced firms.

In January 2021, Coinbase bought FairX, a small futures exchange in Chicago. The goal of the deal was to make it easier for traders to get into derivatives markets. A retail-focused futures exchange startup called The Small Exchange also released a crypto futures product that requires less cash upfront. Citadel Securities, Jump and Interactive Brokers have all backed the company.

Related: What is crypto market capitulation and its significance?

The growth of decentralized derivatives markets

Like centralized venues, perpetual futures comprise most of the volume of decentralized derivatives. First led by Perpetual Protocol and now by dYdX, the daily volume of decentralized perps averages $3 billion per day.

Even though growth has been robust, decentralized perpetual volume makes up less than 5% of all crypto derivatives volume. Over the next two years, we expect this segment to grow in a big way.

Collect” below the illustration at the top of the page or follow this link.

As more projects and protocols build on top of decentralized perpetual swap protocols, the value of the platforms that support them will continue to grow. Along with decentralized futures, options and structured products, market participants will be excited to see more crypto-native innovations like everlasting options developed.

Protocols like Deri, which offers both perpetual futures and everlasting options, let users trade derivatives in a very DeFi-native way, giving them the ability to hedge, speculate and arbitrage, all on-chain.

Derivatives could lure in more traditional investors

Institutional traders like these instruments more because they can provide stable returns, similar to fixed income, and these trades are executed with strategies like bull call spreads and covered calls. Also, institutional traders can combine call and put options to set a risk limit without risking liquidation for options trades.

Fidelity Digital Assets now offers their institutional client base the ability to borrow using crypto as collateral so that large companies can add Bitcoin to their assets more easily with the help of these services.

In 2023, it’s likely that crypto will be easier to use as collateral for everyday business, which will allow companies to take on more risk using cryptocurrency derivatives.

Derivatives played an instrumental role in the 2020-2021 crypto bull market for retail and institutional traders. For many investors, borrowing money and using derivatives is the easiest way to increase their bets on a variety of positions. They are available to use in stocks, currencies and commodities, but their use in cryptocurrencies has been steadily growing since 2017.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

CME Bitcoin futures trade at a discount, but is that a good or a bad thing?

CME Bitcoin futures briefly traded at a 5% discount, alarming analysts, but what does it mean for BTC price?

CME Group’s Bitcoin (BTC) futures have been trading below Bitcoin’s spot price on regular exchanges since Nov. 9, a situation that is technically referred to as backwardation. While it does point to a bearish market structure, there are multiple factors that can cause momentary distortions.

Typically, these CME fixed-month contracts trade at a slight premium, indicating that sellers are requesting more money to withhold settlement for longer. As a result, futures should trade at a 0.5%-to-2% premium in healthy markets, a situation known as contango.

However, a prominent futures contract seller will cause a momentary distortion in the futures premium. Unlike perpetual contracts, these fixed-calendar futures do not have a funding rate, so their price may vastly differ from spot exchanges.

Aggressive sellers caused a 5% discount on BTC futures

Whenever there’s aggressive activity from shorts (sellers), the two-month futures contract will trade at a 2% or higher discount.

CME Bitcoin 1-month futures premium vs. BTC index. Source: TradingView

Notice how one-month CME futures had been trading near the fair value, either presenting a 0.5% discount or 0.5% premium versus spot exchanges. However, during the Nov. 9 Bitcoin price crash, aggressive futures contracts sellers caused the CME futures to trade 5% below the regular market price.

The present 1.5% discount remains atypical, but it can be explained by the contagion risks caused by the FTX and Alameda Research bankruptcy. The organizations were together supposedly one of the largest market makers in cryptocurrencies, so their downfall was bound to send shockwaves throughout all crypto-related markets.

The insolvency has severely impacted prominent over-the-counter desks, investment funds and lending services, including Genesis, BlockFi and Galois Capital. As a result, traders should expect less arbitrage activity between CME futures and the remaining spot market exchanges.

The lack of market makers exacerbated the negative impact

As market makers scramble to reduce their exposure and assess counterparty risks, the eventual excessive demand for longs and shorts at CME will naturally cause distortions in the futures premium indicator.

The backwardation in contracts is the primary indicator of a dysfunctional and bearish derivatives market. Such a movement can occur during liquidation orders or when large players decide to short the market using derivatives. This is especially true when open interest increases because new positions are being created under these unusual circumstances.

On the other hand, an excessive discount will create an arbitrage opportunity because one can buy the futures contract while simultaneously selling the same amount on spot (or margin) markets. This is a neutral market strategy, commonly known as “reverse cash and carry.”

Institutional investors’ interest in CME futures remains steady

Curiously, the open interest in CME Bitcoin futures reached its highest level in four months on Nov. 10. This data measures the aggregate size of buyers and sellers using CME’s derivatives contracts.

CME Bitcoin futures open interest, USD. Source: Coinglass

Notice that the $5.45 billion record high happened on Oct. 26, 2021, but Bitcoin’s price was near $60,000 then. Consequently, the $1.67 billion CME futures open interest on Nov. 10, 2022, remains relevant in the number of contracts.

Related: US crypto exchanges lead Bitcoin exodus: Over $1.5B in BTC withdrawn in one week

Traders often use open interest as an indicator to confirm trends or, at least, institutional investors’ appetite. For instance, a rising number of outstanding futures contracts is usually interpreted as new money coming into the market, irrespective of the bias.

Although this data can’t be deemed bullish on a standalone basis, it does signal that professional investors’ interest in Bitcoin is not going away.

As further proof, notice that the open interest chart above shows that savvy investors did not reduce their positions using Bitcoin derivatives, regardless of what critics have said about cryptocurrencies.

Considering the uncertainty surrounding cryptocurrency markets, traders shouldn’t assume that a 1.5% discount on CME futures denotes long-term bearishness.

There’s undoubtedly a demand for shorts, but the lack of appetite from market makers is the primary factor leading to the current distortion.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

CME Group launches euro-denominated Bitcoin and Ether futures

First announced on Aug. 4, the euro-denominated Ether futures represent investment vehicles launched prior to the blockchain’s transition to proof-of-stake.

Derivatives marketplace Chicago Mercantile Exchange Group has launched trading for Bitcoin euro and Ether euro futures contracts.

In a Monday announcement, CME Group said that it launched contracts for euro-denominated Bitcoin (BTC) and Ether (ETH) futures sized at 5 BTC and 50 ETH per contract. Both contracts will be listed on CME, cash-settled and based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, respectively.

“Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap,” said CME Group global head of equity and FX products Tim McCourt.

First announced on Aug. 4, the euro-denominated ETH futures represent investment vehicles launched prior to the Merge in which the Ethereum blockchain transitions to proof-of-stake — expected between Sept. 10 an20. Cointelegraph reported that countries in Europe, the Middle East and Africa represented 28% of all trading for BTC and ETH futures contracts.

Related: CME Group plans to launch options on ETH futures prior to the Merge

CME Group launched its first BTC futures contract in December 2017, followed by an ETH futures contract in February 2021. In 2022, the derivatives exchange expanded its offering of crypto investment vehicles to include micro BTC and ETH futures. The launch of euro-denominated BTC and ETH futures came as the euro remained at parity with the U.S. dollar — at the time of publication, 1 euro is worth roughly $1.

According to data from Cointelegraph Markets Pro, the price of ETH is $1,509 at the time of publication, having risen more than 3% in the last 24 hours. The BTC price fell below $20,000 on Sunday, hitting a 20-month low, but since rose 2% to reach $20,342.

CME Group plans to launch options on ETH futures prior to the Merge

The group reported it had observed an increase in trading volume and open interest for ETH futures and micro-sized ETH futures options, possibly in anticipation of the Merge.

Major derivatives marketplace Chicago Mercantile Exchange Group intends to launch options trading for its Ether (ETH) futures products.

In a Thursday announcement, the CME Group said that subject to regulatory review, it plans to launch options contracts for its Ether futures, sized at 50 ETH per contract. The futures options, expected to start trading on Sept. 12, will follow the firm launching micro-sized Bitcoin (BTC) and Ether options in March 2022, BTC options trading products in January 2020, and a BTC futures contract in December 2017.

CME Group’s global head of equity and FX products Tim McCourt cited the Ethereum blockchain’s upcoming transition to proof-of-stake — also known as the Merge — in announcing the ETH futures product. McCourt said the group had observed an increase in trading volume and open interest for ETH futures and micro-sized ETH futures options, possibly in anticipation of the Merge.

“We have […] seen heightened activity in our September and December Micro Ether options, which could also suggest that participants are hedging risk around the proposed date of the merge,” said McCourt in a statement shared with Cointelegraph. “Seventy-eight percent of Micro Ether options open interest is in the September and December contracts.”

The CME Group reported a 7% increase in the average daily trading volume of ETH futures from June to July and a 41% increase in the same volume of contracts of micro ETH futures. Trading activity for ETH and investment vehicles linked to the cryptocurrency could see significant volume in advance of the Merge, which core developers expect to happen on Sept. 15.

Related: CME Group plans to launch euro-denominated Bitcoin and Ether futures

According to data from Cointelegraph Markets Pro, the price of ETH is $1,863 at the time of publication, having risen 2% in the last 24 hours. The token hit an all-time high price of roughly $4,800 in November 2021.

CME Group plans to launch euro-denominated Bitcoin and Ether futures

The futures options, expected to start trading on Aug. 29, followed the CME Group launching micro-sized Bitcoin and Ether options in March.

Major derivatives marketplace Chicago Mercantile Exchange Group aims to launch trading for Bitcoin euro and Ether euro futures contracts starting on Aug. 29.

In a Thursday announcement, CME Group said that subject to regulatory review, it plans to launch contracts for euro-denominated Bitcoin (BTC) and Ether (ETH) futures that will be sized at 5 BTC and 50 ETH per contract. Both contracts will be listed on CME, cash-settled, and based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate.

“Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures, is creating increased demand for risk management solutions by institutional investors outside the U.S.,” said CME Group global head of equity and FX products Tim McCourt. “Euro-denominated cryptocurrencies are the second highest traded fiat behind the U.S. dollar.”

According to McCourt, countries in Europe, the Middle East and Africa represented 28% of all trading for BTC and ETH futures contracts. The listing announcement also followed the euro reaching parity with the U.S. dollar in July for the first time in 20 years — at the time of publication, 1 euro is worth roughly $1.02.

Related: Circle launches euro-backed stablecoin EUROC

CME Group launched the first BTC futures contract — denominated in U.S. dollars — in December 2017, followed by an ETH futures contract in February 2021. In March, the derivatives exchange expanded its offering of crypto investment vehicles to include micro BTC and ETH futures.

Cointelegraph reported in July that CME Group’s BTC and ETH derivatives contracts saw record activity in the second quarter of 2022, with 10,700 and 6,100 contracts traded, respectively. The exchange also reported its micro BTC and ETH products had an average daily volume of 17,400 and 21,300 contracts, respectively, in Q2 2022. Much of the trading activity came amid extreme volatility in the crypto market, with the prices of both BTC and ETH dropping in May and June.

CME crypto futures see record activity during bear market

The trading of Bitcoin and Ether futures on CME remained elevated in the second quarter, with daily open interest hitting all-time highs.

Bitcoin (BTC) and Ether (ETH) derivatives contracts offered by CME Group saw record activity in the second quarter, offering tangible evidence that professional traders were still accessing digital assets during the bear market. 

The average daily open interest (OI) across CME’s crypto futures products reached 106,200 contracts in the second quarter, the highest on record, the company disclosed Thursday. In futures markets, OI reflects the total number of derivatives contracts that have not been settled.

In terms of average daily volume, Bitcoin futures saw 10,700 contracts traded in the second quarter; Ether’s daily volume was 6,100 contracts.

During the week of June 21, large open interest holders (LOIH) accessing CME Group’s crypto products reached a high of 404, signaling “growing interest from institutional and large sophisticated investors,” the company said.

Despite extreme market volatility for Bitcoin and Ether, CME Group’s crypto futures products have been “a haven of consistent liquidity with continued volume and open interest growth for investors,” Tim McCourt, CME’s global head of equity and FX products, said, adding:

“The variety of products, including the smaller sized micro bitcoin and micro ether futures and options, offers enhanced flexibility and trading precision for a range of market participants, including large institutions as well as sophisticated, active traders.”

In 2017, CME Group became the second derivatives marketplace to offer Bitcoin futures contracts, trailing its cross-town rival CBOE Global Markets by one week. By the end of 2020, CME’s cumulative Bitcoin futures volume reached $100 billion.

Related: ‘Bullish rate hike’ — Why crypto spiked today in the face of bad news

The derivatives exchange has since gone on to launch several crypto derivatives products, including micro-sized Bitcoin and Ether options. These contracts are 10% the size of their respective crypto assets, giving traders more opportunities to hedge their exposure.

On Thursday, CME revealed that its Micro BTC product saw an average daily volume of 17,400 contracts in the second quarter. Daily volume for its ETH-equivalent micro contract was 21,300.

How Bitcoin’s strong correlation to stocks could trigger a drop to $8,000

The absence of a CME Bitcoin futures premium, unrelenting record-high inflation and investor concerns over the economy are all factors weighing on BTC price.

The Bitcoin (BTC) price chart from the past couple of months reflects nothing more than a bearish outlook and it’s no secret that the cryptocurrency has consistently made lower lows since breaching $48,000 in late March.

Bitcoin price in USD. Source: TradingView

Curiously, the difference in support levels has been getting wider as the correction continues to drain investor confidence and risk appetite. For example, the latest $19,000 baseline is almost $10,000 away from the previous support. So if the same movement is bound to happen, the next logical price level would be $8,000.

Traders are afraid of regulation and contagion

On July 11, the Financial Stability Board (FSB), a global financial regulator including all G20 countries, announced that a framework of recommendations for the crypto sector is expected in October. The FSB added that international regulators need to supervise crypto markets in line with the principle of “same activity, same risk, same regulation.”

In a written speech on July 12, Jon Cunliffe, deputy governor for financial stability at the Bank of England, said that crypto is somehow over and it should not be a concern anymore. Cunliffe added: “innovation has to happen within a framework in which risks are managed.”

To date, investors still haven’t figured out the total losses from deposits on crypto lenders Celsius and Voyager Digital, and both firms continue to seek either a recovery plan or bankruptcy. According to Voyager, the firm still holds $650 million worth of “claims against Three Arrows Capital,” so the exact numbers of customer assets remain unknown.

The negative newsflow is reflected in the CME’s Bitcoin futures contracts premium. This data measures the difference between longer-term futures contracts and the current spot prices in regular markets.

Whenever this indicator fades or turns negative, this is an alarming red flag. This situation is also known as backwardation and indicates that bearish sentiment is present.

BTC CME 1-month forward contract premium vs. Coinbase/USD. Source: TradingView

These fixed-month contracts usually trade at a slight premium, indicating that sellers are requesting more money to withhold settlement for longer. As a result, futures should trade at a 0.25%–0.75% premium in healthy markets, a situation known as contango.

Notice how the indicator has stood below the “neutral” range since early April, since Bitcoin failed to sustain levels above $45,000. The data shows that institutional traders are unwilling to open leverage long positions, although it is not yet a bearish structure.

Macroeconomic fears are preventing investors from trading crypto

Exchange-provided data highlights traders’ long-to-short net positioning. By analyzing every client’s position on the spot, perpetual and futures contracts, one can better understand whether professional traders are leaning bullish or bearish.

There are occasional discrepancies in the methodologies between different exchanges, so viewers should monitor changes instead of absolute figures.

Exchanges top traders Bitcoin long-to-short ratio. Source: Coinglass

Despite Bitcoin’s 11% correction from July 9 to 12, top traders have increased their leverage longs. The long-to-short ratio at Binance remained relatively flat at 1.13, while the top traders at Huobi started at 0.95 and finished the period at 0.93. However, this impact was more than compensated by OKX traders increasing their bullish bets from 1.09 to 1.32.

Related: The search term ‘Bitcoin Crash’ is trending — Here’s why

The lack of a premium in the CME futures contract is not concerning because Bitcoin is struggling with the $20,000 resistance. Furthermore, top traders on derivatives exchanges have increased their longs despite the 11% price drop in three days.

Regulatory pressure is unlikely to recede in the short term and at the same time, there’s not much that the Federal Reserve can do to suppress inflation without triggering some form of an economic crisis. For this reason, pro traders are not rushing to buy the dip because Bitcoin’s correlation to traditional assets remains high.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.