Entering 2021, Ethereum has soared from around $735 to around $1283. Although it has not yet reached ATH, Ethereum once became the top 100 assets in the world by market value.
As of 16:00 on January 10, according to CMC data, the price of Ethereum was 1095.28 US dollars, with a total market value of 125,086,603,587 US dollars, and it has fallen out of the ranks of the top 100 assets in the world by market value.
On December 16, 2020, the Chicago Mercantile Exchange (CME) announced that it will launch Ethereum futures on February 8, 2021. According to the official information released by CME, the Ethereum futures launched this time are the same as the Bitcoin futures launched by CME in December 2017, and will be settled in cash based on the reference exchange rate.
Last weekend ushered in a wave of slump, Huobi Exchange quoted Bitcoin at $35,423.48. The launch of CME Ethereum futures will undoubtedly become an event that will have a greater impact on the market trend in the past month. At the same time, whether it can boost ETH to create its own record high also places the market's expectations.
Although CME announced the launch of Ethereum futures in December last year, the price of Bitcoin has continued to refresh its ATH since the beginning of 2021, and more market attention has been focused on the spot market. News of the launch of Ethereum futures has been made quite subtle by the bull run. On the one hand, Ethereum futures are seen as a factor that eases the Bitcoin market. The entry of institutions has caused a large amount of Bitcoin to flow to the wallet. There are hidden dangers in the liquidity and supply of the Bitcoin market. The launch of Ethereum futures Will become another option for investment, thus relieving the bitcoin market. On the other hand, the small-cap effect caused by the popularity of DeFi projects and the over-exaggerated altcoin market are not only the blessings of the project itself, most DeFi projects are based on Ethereum for transactions. Obtaining Ethereum has become a necessary condition, but it also makes the high price sentiment The reversal of the market becomes more obvious.
In addition, Ethereum is the only cryptocurrency that is not considered a security by the US Securities and Exchange Commission. The launch of Ethereum futures will play a role in promoting the development of future digital currency regulation.
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(Source: Twitter)
On December 11, 2017, when the price of bitcoin was close to 20,000 US dollars, the Chicago Board Options Exchange (CBOE) launched the world's first bitcoin futures. Within seven days, it created a historical high of 20,500 US dollars, with a trading volume of 3,864 lots. But the ensuing bear market caused the price of Bitcoin futures to plummet. In December 2018, the quotation was only $3,120.
Entering 2021, due to the soaring market conditions, CME Bitcoin futures have created the largest gap ever at $4,130. The reason why CME Bitcoin futures forms a trading gap is that CME only trades from Monday to Friday. When encountering a large market, it will cause a gap because the futures market stops. During CME's non-business hours, the price of Bitcoin has repeatedly hit new highs, and when there is a gap, it has also become one of the factors that affect the price of Bitcoin.
It is undeniable that the digital currency industry is currently in a stage of irrational prosperity. The price of the digital currency market fluctuates greatly. In the rising market, based on market feedback and amplification, investors' confidence has been improved and more investors have been attracted to enter the market. The optimism of "the future is better than the past" has made The bubble behind the speculative psychology continues to expand.
Although the spot price of Bitcoin is not directly affected by the futures market, in the short term, arbitrage transactions in the spot market can be combined with purchases in the futures market for hedging.
On January 13, 2018, Ethereum reached its all-time high price of $1423.20 so far. Looking back at the new high of Ethereum this time, it was more based on the impact of the $20,000 price of Bitcoin. At that time, the cryptocurrency market was crazy everywhere, and even altcoins ushered in their own historical highs one after another.
Will the launch of Ethereum futures by CME create an opportunity to break through the historical high of Ethereum?
When CME launched Bitcoin futures in 2017, CME Chairman Melamed once said: "we'll tame BTC".
He wants institutional investors to participate in futures contracts, not just speculators, and called the move "a very important step in the history of Bitcoin, and said it will domesticate Bitcoin into a regular type of trading tool with rules." .
As the value of digital currency continues to rise, traditional financial institutions have increased their recognition of the value of digital assets, and their participation in the field of digital currency has increased. However, due to many uncertain factors affecting digital currency, we will never be able to define its "world market price." ".
On the one hand, the launch of Ethereum futures provides a tool for price discovery, futures trading based on supervision will obtain more stable investment results; at the same time, it brings liquidity to the digital currency market, so the launch of Ethereum futures will definitely attract more Many players enter the market. Ethereum's ATH will also meet as expected.
