Ethereum didn`t Respond to the CME Futures Launch. Why?
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Ethereum didn`t respond to the CME futures launch. Why?
Over the past day, the price of the largest altcoin in terms of capitalization has practically not changed. BitXmi experts explained whether it is worth waiting for a decrease in its quotes and how the emergence of new contracts will affect them in the long term.
On the night of February 8, Ethereum futures were launched on the CME Chicago Mercantile Exchange. This event was expected and prepared for since traders still remember the history of the appearance of futures contracts for bitcoin on this site. Shortly thereafter, a long-term decline in the BTC rate began, which did not seem to be a coincidence. Later, the former head of the US Commodity Futures Trading Commission (CFTC) Christopher Giancarlo admitted that the financial regulator specifically permitted to launch the instrument to “burst the bitcoin bubble.”
But over the past day, the cost of ETH has hardly changed. Before the launch of futures, it cost $ 1.61 thousand, and today – $ 1.7 thousand on the BitXmi crypto exchange.
Why has Ethereum not responded to the launch of futures?
The situation with the emergence of a new instrument on CME can be compared to the launch of Bitcoin futures on the Bakkt platform in 2018. Then, too, everyone was waiting for this, but in fact, it did not affect the bitcoin quotes in any way. Initially, Bakkt trading volumes were disproportionately small to have any effect on market movements. Trade turnover reached noticeable values only in 2020.
Ethereum futures were already traded before in countries other than the United States. This is another reason why the launch of contracts on CME did not have any impact on the crypto market in general and the quotes of the largest altcoin by capitalization in particular.
Should we expect Ethereum to decline in the coming days?
Large players have been actively participating in trading in bitcoin, which has a strong impact on the Ethereum rate for several years now. This liquidity can have a much greater effect than the altcoin contracts themselves on the Chicago exchange. The growing market for decentralized finance has an even greater impact on Ethereum – it increases the demand for cryptocurrency.
How can futures affect Ethereum in the long run?
The launch of Ethereum futures on CME is one of the reasons for its growth. But first of all, the success of the altcoin will be influenced by the further advancement in development, the development of the DeFi industry, and the solution of problems such as high transaction fees, experts emphasize.
In the long term, it is worth counting on the growth of Ethereum quotes due to fundamental reasons justified by a global network update. But futures for Ethereum on CME will have enough volume to influence the trading dynamics of the asset, experts say.
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