Chicago Mercantile Exchange (CME) futures is said to have recorded a 4-month low amid crashing BTC price. Altcoins, on the other hand, have been rising steadily. Today, despite a bearish market, they were not affected as drastically as the top cryptocurrency. Is this an indication of the rise of altcoins?
Trading Volume of CME Futures Falls to a 4-Month Low
According to charts which show the relationship between CME’s open interest and daily volumes, there has been a significant fall in open interest from $384 million to the current value of $218 and daily volume has reduced from its maximum value of $1.726 billion to its current value at $86 million.
The news comes following the most recent Bitcoin’s price fall which began about 48 hours ago in which bitcoin had slumped below the long-held $10k support level. Also, about a week ago, perhaps in their bid to maintain trading volume, CME was reported to have opened the gates for traders to enable them to hold a higher number of open BTC contracts as they doubled their BTC futures contracts limits.
Bitcoin Dips Below $10k
Bitcoin began the week on a bearish note. The top cryptocurrency had fallen steeply from its previous price of $10,351 on Sunday morning to its current price of $9,897 in the early hours of today. This represents a 4.5% fall. Though the percentage of the dip is relatively small given the kind of volatility the crypto market has seen earlier, bitcoin slipping below the $10k support level alongside a bull run seen in alts within the same period of time raises several questions.
Has the Alt Season Arrived?
As bitcoin loses market dominance from 70.5% since September 3rd to 67.5% as of the present, Ethereum, which now trades well above $200 has increased in market dominance to about 9%. Many other alts, alongside Ethereum, rose steadily. Ripple gained almost 10% which saw the price crossed the critical $0.3 dollar resistance while Stellar (XLM) has gained more than 50% in the last 3 days. Many top cryptocurrencies recorded gains which make analysts believe that we have now officially entered the long-awaited alt season! Despite this, alts are beginning to record loses.
According to Crypto Welson on twitter,
Many other analysts seem to support the notion that alts are reaching for the moon which this new price breakout. Though there has been a bearish mood today, they believe this is still very much healthy.
What Has Brought About the Bitcoin Price Crash?
On the other hand, while the enthusiasm existing as a result of Bakkt’s expected launch is still high, many believe that large BTC holders, more commonly known as whales, might be manipulating the market in preparation of the much anticipated Bakkt launch. According to an opinion on Twitter,