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Veteran Trader Peter Brandt Dispels Age-Long Myth on What Drives BTC

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The veteran trader, Peter Brandt, has taken to Twitter to dispel the myth of what controls the Bitcoin price. “Does the CME Group control the price of Bitcoin?” he asked.

In answer to this, he gives Bitcoin’s global daily trading volume as approximately 2.5 million BTC, while the daily trading volume at the CME is nearly 45,000 BTC. “To suggest that the CME controls the price of BTC is utter hogwash,” he concluded.

Cryptoanalyst Willy Woo, who commented on the post made by the veteran trader, believes that the futures market overall influences the Bitcoin price, of which the CME is a small part. “Worth noting: BTC USD futures volume dwarfs spot. While CME is a small part of the total futures, the futures market is the majority. Futures markets undoubtedly lead the price more than spot,” he stated.

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CME Group, which describes itself as the world’s leading derivatives marketplace, launched its first BTC futures contract in December 2017, and an ETH futures contract was introduced in February 2021. This year, the derivatives exchange increased the number of cryptocurrency investment vehicles it offered by adding micro-BTC and ETH futures. CME Group likewise introduced Bitcoin and Ether futures in late August.

Bitcoin remains indecisive

Although attitudes remained cautious in light of the Federal Reserve’s warning that the economy might suffer as a result of its tightening of policy, cryptocurrencies managed to fend off falls brought on by another significant interest rate hike.

After a brief recovery at the $19K mark, Bitcoin was trading slightly lower at $19,168 at the time of publication. Jamie Dimon, the CEO of JPMorgan, did not do the digital asset markets any favors when he reiterated his skepticism and referred to cryptocurrencies as “decentralized Ponzi schemes.”

Some traders may seek confirmation that a bounce is probable from indicators like Bitcoin’s 14-day relative strength index. The momentum indicator, the RSI, is almost at oversold levels. However, after the Fed’s belligerent performance, contrarian bets on riskier assets seemed to be scarce.

The TD Sequential, according to cryptoanalyst Ali, “presents a buy signal on the daily chart, which might support a BTC recovery towards $20,000.” To prevent a decline to $16,500, BTC must maintain a price above $18,000.



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