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:
BitMEX: 18,694
CBOE: 18,970
CME: 19,050
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?