Analysts believe this could be a fresh catalyst to drive bitcoin back to $10,000. Bitcoin price dropped from $10,500 to below $9,650 throughout the weekend, which caused liquidating lots of futures trading contracts.
CME bitcoin futures trading has $300 million to $500 million daily volumes. It recorded $515 million bitcoin trading per day in May 2019, when the bitcoin price was around $13,000.
Bitcoin futures trading platforms like BitMex and Binance Futures have billions of dollars of daily trading. But those platforms are highly leveraged, and the real volume is not that much.
CME Group is a multinational company comprised of four exchanges CME, CBOT, NYMEX, and COMEX. CME Bitcoin Futures provides not only Bitcoin Futures trading but also options on futures.
A large portion of daily trading in the Bitcoin global market happens in the CME platform. As such, traders and analysts believe heightened volatility during weekends in the cryptocurrency market maybe because of this platform not being active.
Almost after closing the CME market before the weekend, the bitcoin price dropped about the right percent. The CME market just opened, and the BTC price raised again above $9,800.
Monday is widely recognized as a day of higher volatility than any other workday for the crypto market. So, it could cause some short-term momentum for the BTC market.
BTC has defended the $9,800 support level and just went below that for a short time. Traders believe CME opening may lay a stronger foundation for future rally sharp to medium-term.
Bitcoin mining reward may halve in late April, which is one of the most critical incidents for the BTC market trend. Anyway, $9,900 is now a healthy support level after the CME opening. Technical analysts believe another active week for BTC is on the way.
