Bitcoin and Top Crypto Assets See Price Surge as CME BTC Futures Set to Expire Today
Right before Christmas, Bitcoin (BTC) and some of the other top tokens in the market have risen in value. When Christmas Eve started, Bitcoin’s price was below the $4,000 USD mark, but it was above $4,250 USD when Christmas finally arrived.
This so-called Santa Rally is famous in the traditional stock markets because a lot of professional traders and fund managers wind down on their operations because they are set to take some days off at the end of the year, so retail investors generally get bullish around the time and prices go up. It is also said that New Year optimism also has an effect at this.
However, the Santa Rally did not really last at all. Bitcoin dropped on Christmas day and basically reverted to its old value. There is something even worse happening, though, the CME Bitcoin futures are abou to expire and this will negatively affect the market.
The End of The Futures Contracts
It is being widely debated whether the contracts that are ending today are really going to let any lasting effect in the market. In some recent months, they did not affect it so much, but in November they affected it a little bit more.
Despite the end of the contracts, cryptos are in the red anyway. Bitcoin is down 3.5% in the last 24 hours and XRP has fallen 4.5%. Bitcoin Cash is the greatest loser of the today today with 10.47% down from this timeframe.
The Santa Rally did not really happen and now the prospects for the end of the year are not great. Bitcoin may (and probably will) make a comeback in 2019, but nobody is sure that this comeback will actually be done soon. In fact, it is more likely that the prices will still continue to drop for some time instead of going up anytime soon, unfortunately.