After CME announced that they would soon be offering Bitcoin futures, the price of the digital currency took a big upward swing. However, CME is of the opinion that futures could actually put a stop to Bitcoin’s synonymous volatility.
CME will be putting in place special price fluctuation limits that will help protect investors from the notorious price swings, but these same protections could also help ease the price swings and make the digital currency settle down somewhat.
Bitcoin price protection
CME will implement special price fluctuation limits at seven percent and 13 percent above or below the prior settlement price, and prevent trading outside the 20 percent range, according to details the exchange released.
These protections sound familiar to some as they are based on what is allowed on US stock index futures. The thoughts are that these same protections have helped the stock exchange, but it is more important for the violently volatile Bitcoin…