CME Bitcoin Futures’ Last Trade Today, BTC Drops 9% to below $4k yet Again

Bitcoin price is seeing a serious drop of about 9 percent yet again as it falls to $3,950 at the time of reporting. It is possible this fall is caused by CME Bitcoin futures contracts that are expiring today.

CME Bitcoin Futures’ Contracts Expire

As it happens, CME Bitcoin Futures contracts are expiring on the last Friday of every month i.e. today. For the contract month of November 2018, the product code BTCX18’s first trade has been on September 2018 and last trade on November 30, 2018.

As for the timing, it says on CME website,

“Termination of Trading: Last Day of Trading is the last Friday of contract month. Trading in expiring futures terminates at 4:00 p.m. London time on Last Day of Trading.

And as happens with this termination day, the bitcoin prices take a hit. In the past, a pattern has emerged where with futures expiration, the prices take a drop with a few exceptions like in February.

Back in May Fundstrat’s Tom Lee had explained the connection between the two with,…

Read Full Story : Coingape

2018-11-30 13:43:56

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