CME’s Bitcoin Futures Fueled by Worries Over Geopolitical And Money Printing

Umme Haani
Umme Haani is a writer for Thecoinrepublic. she contributes a researched piece on cryptocurrencies and updates. Umme is an aspiring engineer who immensely enjoys writing and technical writing brings the best of both worlds under one roof for her.
  • There were many instances when the price of crypto saw sudden spikes of upward movement.
  • The same thing happened for CME’s bitcoin future market recently. Peter Tudor Jones, an American hedge funds manager, conservationist, and philanthropist decided to support bitcoin as an inflationary hedge.

There were many instances when the price of crypto saw sudden spikes of upward movement. This happened when a macro-investor or angel investor started investing. The same thing happened for CME bitcoin’s future market recently. Peter Tudor Jones, an American hedge funds manager, conservationist, and philanthropist decided to support bitcoin as an inflationary hedge. He also decided that Jones’ fund could hedge through investing in the bitcoin future.

After the news, there was a surge in CME’s bitcoin futures contract that fueled the price upside. On May 5th, the no. of total large open interest holders was below the support level of 40 traders. Suddenly, the price jumped to an all-time high 66 traders exceeding 25 bitcoin. Hence, the data from the derivatives giants is indicating participation from large traders in recent times. On May 8, it was the third consecutive day for CME bitcoin of open interest records in the last week. The bitcoin futures made a new all-time high that trading below just under $500 million.

Views of Financial institutions 

According to the director of product at Messari and for the quantitative trader of Tower Research, Qiao Wang, the growth of regulated future markets of institutional interest in bitcoin has fueled uncertainties of current geopolitical and money printing.

Tim McCourt, CME Group Global Head of Equity Index, and Alternative Investment Products also viewed the reason of the current growth of open interest is the intention of managing risk amid global uncertainty. The block will continue to provide its customer robust liquidity and risk management tools to find the way in this difficult uncertain environment.

Peter Tudor Jones is not the only optimistic case of investing from big hedge funds in CME bitcoin, recently Renaissance Technologies also reported their Medallion Funds are now permitted for trading activities in futures contracts on the CME. 

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