CME Bitcoin futures surpass Binance: Milestone moment?

Yamini003

On the evening of November 9th, Bitcoin experienced a strong rebound, breaking through the $35,000 resistance level with unstoppable momentum, briefly reaching a high point of $38,000. The total market capitalization of cryptocurrencies also surpassed $1.4 trillion.

In comparison, the news that the Chicago Mercantile Exchange (CME) Bitcoin futures reached an open interest of 108,900 BTC (approximately $4.02 billion) and surpassed Binance might not have garnered much attention that day. However, for the cryptocurrency industry, this is undoubtedly a significant milestone moment.

Bitcoin combines many advantages of gold and foreign exchange, such as:

1. BTC, as a globally liquid network, facilitates relatively easier transfer of liquidity.
2. The price trend of BTC can promptly reflect changes in global liquidity levels.
3. BTC can serve as a short-term hedge, acting as a temporary "liquidity channel" and "safe haven" for risk capital.
4. BTC trading is more decentralized compared to forex trading and is less susceptible to regulation and central bank policies.

On the other hand, starting from the fourth quarter of 2022, the correlation between Bitcoin and gold, Nasdaq, and the US dollar has gradually diminished. To some extent, this suggests that Bitcoin is more conducive to diversifying the overall risk of investment portfolios, reducing volatility.

Surpassing Binance indicates that CME now holds the largest share in the BTC Delta 1 market, signifying a closer connection between the cryptocurrency market and other markets. Once the spot ETF is approved as planned, it is likely to attract more traditional institutions to expand their exposure to cryptocurrency investments, further elevating CME's position in the global cryptocurrency market.

Traditional institutions may prefer to view the cryptocurrency market from a global macro perspective. Their entrance into the market will introduce global macro narratives into the crypto space, which is quite different from the perspective of crypto "natives." Therefore, for investors, continuing to analyze the cryptocurrency market using old frameworks may no longer be effective. In the future, a new analytical framework that is cross-asset and cross-market must be introduced.

In summary, the "wild west era" of cryptocurrencies is coming to an end, and the "cryptocurrency macro era" is just beginning to tighten its integration with the global economy.

Ritu13

Binance has also been defeated.

Samiksha

Regardless of the reasons, as long as we know what to do, it should be fine.

Ritu77

Forget about Binance; otherwise, you might end up biting off more than you can chew.

977Iti

I heard that Binance exchange is quite powerful.