Bitcoin Surges 5.5% to Above $8550 Following Launch of New Product by CME Group

Siamak Masnavi

On Tuesday (January 14), which coincides with "New Year's Day" (better known as "Old New Year") according to the Russian Orthodox Church (which uses the Julian calendar), Bitcoin celebrated by surging 5.5% to $8,551, which is the highest level it has been since 14 November 2019.

Bitcoin's jump in price came just hours after CME Group (aka "CME") launched its latest Bitcoin product: options on Bitcoin futures contracts

CME's launch occurred at 10:00 (CT) or 15:00 (UTC) on Monday (January 13). 

As you can see in the 24-hour BTC-USD price chart below from CryptoCompare, Bitcoin's price did not get an immediate boost, presumably because most Bitcoin derivatives trading occurs in South-East Asia and trading in CME's options on Bitcoin futures started at 23:00 Hong Kong time:

BTC-USD One Day on 14 Jan 2020.png

Bitcoin's price surge seems to have started around 23:55 (UTC) on January 13, approximately nine hours after the launch, when Bitcoin was trading at $8,106. Within less than five hours, Bitcoin had raced to $8,551, which is the highest level it has been in two months, as you can see from the three-month BTC-USD price chart shown below:

BTC-USD Three Months on 14 Jan 2020.png

As Tim McCourt, a Managing Director at CME Group and CME Group's Global Head of Equity Products, explained in a LinkedIn post on January 13, these new option contracts "give the buyer the right to buy or sell one CME Bitcoin futures contract (equal to five bitcoin) at a predetermined price on a given date in the future." The FAQ page for this product says that "upon termination of trading, in-the-money options, expire into 1 bitcoin futures contract which immediately cash settles to the CME CF Bitcoin Reference Rate (BRR)." These options are "available to trade on CME Globex as well as via ex-pit transactions on CME Clearport."

According to the latest trading activity report by CME Group, 55 "Options on Bitcoin Futures" contracts (which corresponds to 55 Bitcoin Futures contracts, or 275 bitcoins since each Bitcoin futures contract represents five bitcoins) worth approximately $2.3 million were traded between 10:00 (CT) and 16:00 (CT) on January 13:

CME Bitcoin Futures Report for 13 Jan 2020.png

Prominent crypto analyst and trader Josh Rager, who is also a Co-Founder of online crypto learning platform Blockroots, had this to say about Bitcoin's most recent price action:


Featured Image Credit: Photo via Table Courtesy of CME Group

Kanye Says He Wants to Run for President, Bitcoin Fan Elon Musk Endorses Him

Siamak Masnavi

American rapper, singer, songwriter, record producer, composer, entrepreneur and fashion designer Kanye West celebrated July 4, U.S. Independence Day, by announcing his intention to run for U.S. president in 2020.

So how did Kanye launch his bid to be on the ballot at the 2020 United States presidential election, which is scheduled for 3 November 2020?

Well, late on Saturday afternoon (California team), Kanye sent out the following tweet:

Minutes later, came this endorsement from Tesla and SpaceX CEO Eleon Musk, who has often expressed his interest in cryptocurrency in general and Bitcoin in particular:

Not wanting to be left out of the conversation, a couple of hours, American media personality, businesswoman, socialite, model, musician, and actress Paris Hilton, made it clear that she would not mind being U.S. president either:

As FOX News reported a short time ago, this is not the first time that Kanye has expressed his intention to become U.S. president.

Apparently, back in November 2019, at the fifth annual Fast Company Innovation Festival in New York City, he said that he planned to run for U.S. president in 2024:

"When I run for president in 2024, we're going to definitely -- yo, whatchu [sic] all laughing at? When I run for president in 2024, we would've created so many jobs that, in fact, I'm going to walk...

"What I'm saying is, when y'all read the headlines, 'Kanye's crazy,' this and that, this and that, it's like one in three African-Americans are in jail and all of the celebrities are in jail also because they can't say nothing [sic]! They've got no opinion! They're so scared!"