Crypto Today: Bitcoin stages deep correction, loses more than 10% on the day

Investors move to sidelines before CBOE introduces bitcoin futures.
Bitcoin looks to close the day lower for the first time since Nov. 29.
On a weekly basis, bitcoin is up more than $4K.

Eren Sengezer FXStreet

After rising more than $5000 in two days, the BTC/USD pair lost its traction and lost more than 10% on Friday to ease below the critical $15K mark. Although there were no clear catalysts behind today's deep slide, investors seem to be taking some profit off the table before the CBOE launches bitcoin futures on Monday. In the meantime, the second largest cryptocurrency in terms of trading volume, ether, found some demand amid bitcoin sell-off and was last seen trading at $438, up 5% on the day.

Despite the sharp fall in bitcoin's price, however, the total market capitalization of all the digital currencies stayed above the $400 billion threshold. According to the latest available data on coinmarketcap.com, the market cap was $425 billion. Bitcoin's market dominance, which advanced to 68% yesterday, is now 62%. Ether comes in second with 10.5%.

"CME Group, the largest derivatives exchange in the world, as well as one of the oldest, will launch bitcoin futures trading on Dec. 18th, while CBOE Global Markets, which owns the Chicago Board Options Exchange (the largest U.S. options exchange) and BATS Global Markets, plans to beat CME to the punch by opening its own trading on Dec. 10th," notes coindesk.com author Noelle Acheson.

"Both the CME and the CBOE futures settle in cash, not in actual bitcoin. Just imagine the legal and logistical hassle if two reputable and regulated exchanges had to set up custodial wallets, with all the security that would entail. So, it’s likely that the bitcoin futures market will end up being even larger than the actual bitcoin market," Acheson further adds.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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