CME will implement special price fluctuation limits at 7 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 Tuesday afternoon.
The trading ranges are similar to what is allowed for U.S. stock index futures. But the limits could be more relevant for the notoriously volatile digital currency and could ease investor concerns about investing in the bitcoin product.
Bitcoin can swing several hundred dollars in one day. In just the last few days, bitcoin hit a record high of $7,601.53 Sunday, then dropped below $7,000 before recovering to $7,500 Wednesday morning, according to CoinDesk. In September, bitcoin crashed about 40 percent from above $5,000 to below $3,000 in about two weeks.
That said, some analysts have pointed out that intraday volatility in bitcoin has fallen since the early days of the digital currency…