CME Proposes Limits To Temper Bitcoin’s Volatility

Price volatility is perhaps the primary concern for investors in the cryptocurrency market. Looking back to at Goldman Sachs prediction, Bitcoin was soaring to all-time high nearing $7,400 on November 8 and then suddenly declined to $6,170 on November 12, according to Coinmarketcap. The signature dips and spikes of bitcoin have become the heart and soul of Hodler’s the world over.

Trading Halts and Hard Caps

On October 31, Chicago Mercantile Exchange Group (CME) announced its plan to launch Bitcoin futures by the end of 2017. The derivative was initiated in light of growing investor interest in the emerging cryptocurrency market. Despite this interest, however, the high volatility of bitcoin value has kept many conservative investors at bay.

The CME, which counts among the most substantial futures exchanges in the world, will put a limit in place to prevent the higher volatility. CME’s price volatility limit would be very similar to a U.S. stock index future…

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