The CME opened it’s futures contract today (BTCF8) that expires in January. The spreads are tightening up!
The CBOE’s contract, (XBT) spreads are down from around $100 to around $30 as I look at the price ladder around 3pm ET. The CME’s bid / offer spreads are around $45 for the larger contract. (5 Bitcoin vs. the CBOE’s 1 Bitcoin per contract.)
CME Price Ladder:
CBOE Price Ladder:
Over the weekend, the XBT traded at a high of $20,500 and the CME at $20,600. What do you see in this one minute chart? What I see is normal market behavior.
The futures market volume and liquidity is contrasted by BitMEX, a Hong Kong exchange with spreads under $1.00 and huge volume. (Not available for US customers)
The price differentials taken at 2:46 ET are as follows:
Is there edge in watching BitMEX and trading the regulated futures along with your trading system? This is worth exploring.
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Remember, Bitcoin is a belief market. The underlying fundamentals of all cryptocurrencies is psychological beliefs. I urge my clients to read news items, not for truth, but for beliefs, and most importantly, shift in beliefs. What does the author believe?
A veteran broker and floor trader, Rich went from the "worst trainee trader ever", to building one of the most consistently profitable options trading firms on the Pacific Exchange by training his traders using neuroscience. Rich also holds a Masters Degree in Clinical Psychology, a B.A. in Philosophy, and is a graduate of the Gestalt Institute in San Francisco along with Master’s training in Neuro Linguistic Programming (NLP).