With the expiry of the CME Contracts set to occur on Friday, the crypto community is braced up for the future volatility that will follow the expiration.
The CME Group is the world’s leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange’s rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COME
The Company’s segment primarily consists of the Chicago Mercantile Exchange Inc. (CME), Board of Trade of the City of Chicago, Inc. (CBOT), With the Open Interests being massively large, the upcoming volatility could pose serious consequences to the crypto market at large.
Futures traders, especially those on the CME contracts say they are not adequately motivated to renew the contract and will either settle or do a rollover to June.
CME Contracts holders to roll over to next month
As a result of the impending price of the contracts market within the next two months, a rollover might be the best option for them with the market in contango on a marginal scale. If some CME traders choose to settle their contracts and purchase contracts that oppose, then massive market volatility should be expected.
Bitcoin Open Interest recorded a massive high that has not been seen since 2019, and if some CME contract traders choose to settle, a massive price movement is expected. Furthermore, the volume of Options Contracts has significantly made a 10x high that has never been seen in the crypto market.
With the halving buzz dwindling already, spot exchange recorded little patronage and ended the week with a low trading volume. Trader, analyst and CEO of Quantum Economics, Mati Greenspan posted a tweet here he noted that the crypto market has always seen a price decline every time the institutional investors are running the market.
GAP price analysis
The gap of the CME tends to be filled around the middle of this week still currently stands at $9,175. Going by previous trends, a reversal from this price is what the CME gap needs to make a price surge.
However, the amount of the CME has made the new 200-Day movement average its support level with the indicator steering towards $8528; a surge is imminent.
All things being equal, CME Contracts holders will hope they get the proper motivation to renew their contracts.