Key Takeaways
- CME Group established micro Ether futures.
- Bitcoin Whales are moving coins as they did before the current price drop.
- Bitcoin has reclaimed the $50,000 milestone as the market settles.
On Monday, the CME Group announced that it had created a tiny Ether (ETH) futures contract with a 0.1 ETH contract size, providing private and institutional investors with another Ethereum exposure option. The cash-settled micro ETH derivatives trading under the Globex code METZ1 joins the exchange's other crypto derivatives offerings, including micro Bitcoin (BTC) futures, Bitcoin futures, Bitcoin options, and Ether futures.
The service would enable investors to "hedge their spot Ether price risk or more nimbly execute Ether trading strategies," according to Tim McCourt, CME Group's global head of alternative financial products. One of CME Group's liquid providers for crypto derivatives, Genesis Global Trading, said that it has already completed a contract for the micro ETH futures product in collaboration with crypto investment company XBTO.
Bitcoin whales are moving new coins to exchanges as they did before the $42K BTC value drop.
Large-volume trading actions suggest that a new Bitcoin price drop is yet possible.
Bitcoin (BTC) whales may be preparing to sell at any time as the cryptocurrency’s price hovers around $47,000.
On Dec. 5, on-chain analytics firm CryptoQuant reported that significant volume moves on exchanges were growing again in its daily QuickTake market reports.
Data indicates that Whales are more willing to sell.
CryptoQuant's exchange whale ratio statistic revealed that significant Bitcoin investors were not taking any chances with short-term price activity.
The highest inflows and outflows from exchanges are compared to overall inflows and outflows to determine the exchange whale ratio.
The indicator climbed over the top 0.95 level before Saturday's drop to $41,900 — and is back in the same zone as of Monday.
"Whales continue to deposit BTC on exchanges. The Exchange Whale Ratio surpassed 95%. "Once more," CryptoQuant said.
As Cointelegraph previously reported, open interest on futures exchanges plummeted at the end of the previous week. Still, the question remains if the flushing out was sufficient to prevent more price declines.
Following the weekend's turbulence, Bitcoin has reclaimed the $50,000 milestone as the market settles.
On Tuesday, after firming overnight in line with equities markets and other risk assets, bitcoin climbed 1.5 percent in early Asia. However, many crypto investors are still on edge following Saturday's steep and unexpected drop.
The world's largest virtual currency was last trading at around $50,800, up 2.2 percent on Monday after a tumultuous day.
"The broad belief in cryptocurrency remains high, and market sentiment is improving, as seen by Monday's general risk-on mood. The impact of Omicron appears to be much weaker than the market has taken in "said Edison Pun, a senior market analyst at Hong Kong's Saxo Markets.
Tuesday's calmness came after a raging storm.
On Saturday, Bitcoin plummeted as much as 22% to just under $42,000 due to profit-taking and macroeconomic worries. However, it recovered considerably later in the session, with poor weekend liquidity amplifying price movements.
Analysts were baffled as to what had sparked the massive selling. However, they cited a drop in margin borrowing and new futures holdings, as well as activity by significant bitcoin holders, as proof of huge liquidation.
