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Bitcoin Options Will Be Hot Hit in Asia: CME Group Says

  •  Denis Sinyavskiy
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    CME Group believes that Bitcoin options planned for launch in 2020 will be no less popular than futures, especially in Asia.

Bitcoin Options Will Be Hot Hit in Asia: CME Group Says
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According to Tim McCourt, CME Group’s global head of equity products and alternative investments, Bitcoins options can become no less popular than futures contracts, South China Morning Post reported. They are expected to be launched in the first quarter of 2020.

Bitcoin options — protection against volatility?

A huge role in the trading of Bitcoin futures is played by Asian and European traders, which account for half of the market. Therefore, CME Group expects that the launch of the BTC options will attract a lot of attention precisely from the side of traders and miners in Asia. If everything goes well, options will be launched in the first quarter of 2020.

Futures options allow you to buy or sell an underlying asset at a specific “strike price” on or before the expiration date. This feature allows you to make a profit or to avoid losses without actually owning a futures position, which means controlling the price risks of Bitcoin. Here's what McCourt himself said about this:

“While futures give you a one-for-one exposure, whereby the movement of the underlying bitcoin translates directly to a specific dollar value per contract, an option gives you varying strike-price levels and can give you either downside protection, or upside exposure at a fraction of the underlying [assets] price.”

Hedging option?

The head of CME Group also believes that Bitcoin options will allow Asian cryptocurrency miners to more accurately insure the cost of their production. This practice already exists in China, where miners use bitcoin futures for hedging.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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Bitcoin Price Likely to Decline to $7,800: Crypto Analyst

  • Yuri Molchan
    📰 News

    Bitcoin is to find support at $7,800 or recover to $8,300, an analyst writes, but either way ‘continuation of the ranging on either of the levels is going to occur’

Bitcoin Price Likely to Decline to $7,800: Crypto Analyst
Cover image via www.123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Over the last few days, Bitcoin has been trading below the $8,500 area. At the moment, it has recovered to $8,258 after the recent slip below the $8,100 level.

Analysts have been bullish on BTC in the long run, however, the nearest BTC price movements are expected to be bearish.

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The crypto analyst @CryptoMichNL believes that there are two paths ahead of Bitcoin at the moment. If it fails to recover to $8,300, he says on his Twitter page, then the market should be ready for the flagship coin to drop and find support at the $7,800 or $7,300 levels.

Whichever way it goes, ‘continuation of the ranging on either of the levels is going to occur’.

The analyst tweeted this forecast twice with an hour pause.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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