Bitcoin Traders Await For July 27 as CME BTC Futures Contracts Set to Expire

Bitcoin Price Could Crash Again Before July Ends

The crash in price of Bitcoin last month plagued the market with signs of significant uncertainty. Though few saw the massive bear market coming, many saw the negative effects of the downturn in price. In addition to the major currencies like Bitcoin, Bitcoin Cash, and Ethereum, seeing a decrease in value, the altcoin markets suffered a tremendous hit. Even well-liked coins such as Ripple saw their prices plummet, Ripple specifically falling to a low of around 40 cents per token.

Things have been looking up for the main coins, though, within the past week. Bitcoin was able to surpass the important $8,000 line, marking an increase that had not been seen for quite some time within this market. Though other coins are lagging slightly, their prices have been generally favorable, with Ethereum, Bitcoin Cash, and Ripple all seeing increases overall in the last seven days. However, the uncertainty in the market means that analysts look ahead—not behind—to determine whether this market is a true bull, or merely a bull trap.

One prediction is that the market will experience a significant correction, falling in price, in the coming week. This is because a key Bitcoin futures contract with a major firm is set to expire, meaning that the price is likely to experience a drop reminiscent of previous trends following the expiration of a futures contract within the Bitcoin market.

Bitcoin Futures Contract Expiration

The contracts are being held by the massive derivatives trading company CME Group. Several contracts will expire on Friday, which is July 27th. Contracts are financial products which give institutions the ability to either long (predict growth) or short (predict fall) for the cryptocurrency. When these contracts expire, the cryptocurrency trading market typically takes a significant hit.

Trends show that, when a major contract expires, Bitcoin experiences a price decrease of over 7% around five days before the contract expires. This means that there are approximately two days before the contract expires in which a market crash could happen.

But some analysts remain bullish. Pointing to additional factors, many optimists within the crypto markets argue that Bitcoin may either remain the same in price, or even increase after the contracts expire.

Outside Factors

The biggest additional factor regarding the price of Bitcoin this month is the increase to overall interest in the Bitcoin futures market. CME’s futures market for Bitcoin grew significantly last quarter, setting a record for the highest volume for Bitcoin futures contracts last Tuesday, boasting an incredibly total value of over $530 million USD.

Some, however, still argue that the expiration of this set of Bitcoin futures contracts from CME Group will have negative consequences for the Bitcoin market—and for the rest of the altcoins as well. These analysts point to previous statistical trends as evidence that the market may not be as bullish as some predict.

This next week will be a telling sign for the overall health of the Bitcoin futures market.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,269FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Kanye West and Kevin Hart Gives Bitcoin (BTC) a Shout Out

Over the weekend, Bitcoin got a shout out from two celebrities. The first one came from Kanye West, who appeared on Joe Rogan’s popular podcast...

Ethereum 2.0 Deposit Contract Almost Ready, Awaiting NCC Group Audit Approval

The Deposit Contract of Ethereum 2.0 is almost ready, according to Danny Ryan, a researcher from the Ethereum Foundation. He revealed this development when...

DeFi Harvest Finance Total Value Locked Halves & FARM Tanks Following ‘Economic Attack'

Another day, another DeFi exploit. It was last week that the less than two-month-old Harvest Finance saw its total value locked (TVL) surge to $1.175...

Crypto Market Sentiments Do A 180; From Fear to ‘Borderline Euphoric' Following Bitcoin Rally

Since surging last week to hit $13,000, Bitcoin has been keeping around this level. More importantly, over the weekend, Bitcoin made its first close above...

Biggest News of the Week: Going Mainstream or A Sacrifice in the Name of Pump?

This week, the big news came in the form of PayPal announcing support for cryptocurrencies. Not only the payments company would allow its users to...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today