The Biggest CME Bitcoin Futures Expiration Ever Is Coming, What To Expect For Bitcoin’s Price?

The Biggest CME Bitcoin Futures Expiration Ever Coming

Quick Facts:

  • Bitcoin chart shows “clear skyward trajectory with a rather aggressive trendline” – Mati Greenspan
  • ADX indicator shows “very strong trend” in Bitcoin market
  • CME Bitcoin Futures expiration could have big effect on BTC price

Bitcoin is enjoying a green month that could turn into the highest gains since November 2013 if it manages to close the month at above $8,900. Currently, we are up 67.8 percent in May and 135.8 percent till date in 2019.

At the time of writing, the leading cryptocurrency has been trading at $8,733 with 24-hours gains of 0.89 percent.

Crypto market is having a great time as evident from the fact that crypto volumes remain elevated over the last few days. Mati Greenspan, senior analyst at eToro in his latest market insight shared how on the chart, Bitcoin is showing a “clear skyward trajectory with a rather aggressive trendline.”

But it is not all, another indicator that is ADX which is used to determine the strength of an asset’s momentum. ADX has been elevated since April 2nd surge and is now sustaining above 50 for last two weeks which means “very strong trend.”

The Blast Of Bitcoin Futures Expiry

Bitcoin bulls are in full swing however what’s interesting about this bull market is the clearly seen interest from institutional investors. As a matter of fact, we saw CME Bitcoin futures registering a record trading volume and surpassing $1 billion notional value for the first time this month.

“CME Bitcoin futures reached an all-time record high of 33.7K contracts on May 13 (168K equivalent bitcoin), up nearly 50% from the last record of 22.5K contracts on April 4.”

So, it can be expected when Bitcoin futures contracts on CME where 1 Bitcoin futures contracts equals 5 BTC will impact the price in some way.

According to Bar Chart, Bitcoin futures contracts for the month of May will be expiring on May 31st per CME, the last trade is on May 31st and settlement is on June 3rd. As Greenspan says, this is going to be the biggest BTC futures expiry ever.

Previously, up until the report of Bitwise revealing that 95 percent of the volume is fake, it seems unlikely that these futures on CME that not physically delivered won’t have any effect on price. However, Bitwise in its latest report shared that regulated futures volume has been 48% of the size of the spot market in April.

At the time of writing, Bitcoin has been managing the daily trading volume of $708 million, as per Messari’s Real 10, 24hr volume which shows that the real bitcoin market is really small and more easy to manipulate.

Not to forget that there is also a gap to be filled on CME. As crypto trader Rampage says, “BTC CME gaps yet to be filled, $18,500, $17,700. Look's like we're headed back to fill those gaps!”

Now, it’s to be seen if BTC will get back to where it started or swing upwards.

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