JP Morgan Chase, the largest bank in the United States, believes that when the Chicago Mercantile Exchange (CME) launches a new Bitcoin (BTC) options product on January 13, market interest in Bitcoin will reach a high level.
In a Bloomberg report citing a report dated January 10, a team of JPMorgan Chase analysts led by Nikolaos Panigirtzoglou noted interest in CME's existing Bitcoin futures There has been a surge before the launch of new bitcoin options products.
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Bitcoin options spark "high expectations"
Regarding the change in investor behavior, JPMorgan Chase summarizes as follows:
"This exceptionally strong activity over the past few days may reflect the high expectations of options contract market participants for bitcoin options products."
The recent weekly report of Arcane Research shows that CME traders have higher futures trading prices than traders on other platforms, and the gap between CME and other platforms has widened. CME's June 2020 contract has a premium of close to 4%, while other agencies have a premium of about 3.5%.
The analysts added that the events contrasted sharply with options launched by CME rival Bakkt in December, while the volume of Bakkt's bitcoin options products remained "small."
Overall, traditional interest in Bitcoin futures has taken a long time to gain momentum. As previously reported, Bakkt's official launch in September reflects CME's debut in December 2017, both of which preceded the market's long period of low trading volume.
After the CME's initial Bitcoin futures went live in 2017, Bitcoin has since fallen. There is no decline in the price of Bitcoin to distinguish the option issue next week.
Taste the impact of the market?
Although JPMorgan Chase did not correlate the rise in the previous-period cargo trade with the performance of BTC / USD, Bitcoin has achieved significant growth, rising 15% from $ 7,300 last weekend to a high of over $ 8,400 , Currently located at around $ 8,000.
Most commentators also attributed the strong market performance to Iran-centric geopolitical uncertainty.
In another interview with Bloomberg on Jan. 8, Sonny Singh, chief commercial officer of cryptocurrency payment processor BitPay, said that even a small number of new investors entering Bitcoin are enough to decisively drive the market.
Singh noted that companies such as the Iranian crisis and Fidelity Investments are involved, and he predicts that Bitcoin will break an all-time high of $ 20,000 in 2020.