Bitcoin is gaining significant bullish momentum following a potpourri of multiple tailwinds, including the launch of event contracts on BTC futures by the world’s leading derivatives marketplace, CME Group.
CME Opens Trading For Event Contracts On BTC Futures
On March 13, CME Group rolled out bitcoin futures events contracts.
This new financial product will “provide a limited-risk, highly transparent way for a wide range of investors to access the bitcoin market via a fully regulated exchange.” According to Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, these cash-settled, daily expiring contracts tied to BTC futures will also offer a “lower-cost way for investors to trade their views on the up or down price moves of Bitcoin.”
They are valued at up to $20 per contract and will enable participants to know their maximum profit or loss when entering a trade.
CME Group has vastly expanded its crypto derivatives offerings in the past years. This new product will add to the company’s existing suite of 10 event contracts tied to its benchmark futures markets, which have traded over 550,000 contracts since inception.
CME’s announcement came as investors exhaled after regulators and the Joe Biden Administration stepped in to protect depositors at failed Silicon Valley Bank and Signature Bank. Investors also saw a hopeful sign that the Fed could be less aggressive with interest rate hikes after the near collapse of the banking sector.
Such developments around the pioneer cryptocurrency have caused a substantial uptick in prices recently.
BTC Obliterates $25K Hurdle As Crypto Market Booms
BTC has risen more than 13.80% in the last 24 hours to trade at $25,827 at press time, consequently recovering from losses over the weekend. Bitcoin nosedived last week after uncertainty around the closure of two crypto-friendly banks and the depeg of USDC stablecoin spooked investors. BTC fell to as low as $19,662 on Friday, according to CoinGecko.
Ethereum, the market’s second-largest crypto asset, was up 7.90% in 24 hours, priced at $1,759.23.
The rest of the cryptocurrency market is also in the green, with Dogecoin, the ninth biggest digital asset by market capitalization, surging 7.10% in the past 24 hours to change hands around $0.0766.
USDC has regained its peg, kindling optimism in investors pouring capital into the crypto asset space. Investors are now eyeing Tuesday’s release of the February Consumer Price Index (CPI) print.