Can Bitcoin be tamed? CME suspends their Bitcoin Future Trading Platforms.

[Accardo]

“We will regulate, make Bitcoin not wild, nor Wilder. We'll tame it into a regular type instrument of trade with rules" said CME Group?s Leo Melamed on an interview with ?Reuters" in 2017, when their Bitcoin future Trading was launched. https://www.coindesk.com/cme-groups-leo-melamed-well-tame-bitcoin

Looking at his point about making bitcoin a domestic currency, suspending their Bitcoin future trading shows a sinister around Bitcoin price. Their reason is ?High Volatility". Increase in price also means ?Higher risks".

https://www.thecoinrepublic.com/2020/12/29/cme-suspends-bitcoin-futures-trading-amidst-high-volatility/amp/

I saw an example on Quara at the time of writing this article. Though it's not same with mine but got my idea from the article.

It says: An investor spends $28,000 to buy one Bitcoin and the price of Bitcoin falls back to $20,000 by January or March. What is the hope of such a person without a Bitcoin future Trading platforms?

[jackg]

Taming innovation is a bit like expecting to put out a house fire that's already consumed 2 storeys with a small bucket of water - it's just not going to happen or the innovation will move around the bucket.

I can imagine if everyone's long then they dont want to be the only ones betting short.

[cr1776]

The article isn't very well written, but it says: "The trading has been suspended for some time now."

I can see why if they can't trade 24/7/52 like bitcoin, you would have the entire weekend when futures can't be traded and bitcoin might be 5000 higher or lower from the previous trade.

Of course, that is the point of the futures market, to let people hedge. Seems stupid to have suspended it. At least there are other markets.

[Darker45]

This is the result of their vision to attempt to tame Bitcoin's price. Bitcoin's price, at least at this early stage, can hardly be tamed. It is expectedly wild because the market is still very young and small that a newbie investor company bringing with it hundreds of millions will definitely create huge waves in the charts.

I don't think CME should decide on behalf of all its clients in the face of Bitcoin's high volatility. After all, it has been like that ever since. Let the clients decide for themselves whether to lie low from the market or get into the rough seas and make money.

[avikz]

LOl! I don't know what made Leo think that he can make bitcoin regulated! But the fact is that he can't do it! He can definitely make his bitcoin future trading contract regulated because it doesn't involve any physical bitcoin at all! CME doesn't buy or sell physical bitcoin. Their future trading contract is a index which follows the market price of bitcoin and traders of CME futures contract invests their money on an index, rather than bitcoin!

Now the market is at ATH so it is not advisable for new investors to buy bitcoin, especially the retail ones! But even if you do, please monitor the price closely. If you see that the price is going down, convert your bitcoins to USDT or any other stable coin to hedge against the falling price. This way you can limit you loss. At this point, I don't think any other bitcoin futures contract is available!

[davis196]

Bitcoin futures trading was doomed from the beginning.
I don't believe that Leo Melamed was sincere with his statement about making Bitcoin "not wild" and trying to regulate the Bitcoin market.I guess that he was speaking what the investors wanted to hear.
Anyways,the Bitcoin market is way better without BTC futures trading.The institutional investors will have to buy real bitcoins,instead of buying some financial derivative,that has something to do with the Bitcoin price movements,but isn't directly connected to Bitcoin.

[gmaxwell]

I can't find any source for this but spammy webpages and the CME quotes page has recently updated quotes.  I think this is false.

[Broly46]

What you refer to “tame” it might be an option of short selling, naked short selling seem possible in gold market but some believe it’s not possible with bitcoin because bitcoin is immutable with just 21m max supply, they might not be able to naked short selling to more than 21m bitcoin just as they did in gold, btw I’m interested to know if anyone has finally found a way to actually short selling bitcoin without the supply cap concern.

[figmentofmyass]

I can't find any source for this but spammy webpages and the CME quotes page has recently updated quotes.  I think this is false.

i believe so too. nobody reputable reported it. i looked at CME's tick data and there was no halt, no circuit breaker, no nothing. i think the author just saw the massive gap on sunday's open and assumed something was amiss. or they just had a bad data feed that went dead and didn't verify what happened.

[Crptomagma]

For they perish out of ignorance because if they are conscious enough they would have known that bitcoin activities cannot be tamed because of it digital flexibility and can moved from wallet to wallet with ease.