CME traders rush for the door

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27 Jan 2025

CME traders rush for the door

Concrete signs of de-risking are present in bitcoin derivatives, as CME premiums visit negative territory amid the largest-ever daily reduction in open interest. Is this a brief overreaction, or is a new regime on the horizon?

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A wild week, even for crypto

A big week for headlines has resulted in violent chop for BTC; a crypto-focused executive order, the rescinding of SAB 121, and an NVIDIA drop wiping out $600 billion in paper wealth just to list a few. Despite all of this volatility-inducing news, BTC sees a weekly return of 0.4%. Multiple banking holidays across Asia may further intensify the market’s focus on Wednesday’s FOMC and U.S.-centric economic data. With memory of December’s FOMC fresh in traders’ minds, markets are set up for very sharp moves.

CME traders rush for the door