Bitcoin Loses Steam Below $86K as BCH Soars on CME Futures Listing
Bitcoin's price has slipped below $86,000 after failing to break through $87,300. Despite this, Bitcoin Cash saw a significant surge of 28% to nearly $349 after CME Group announced it will list BCH futures from October 19.
The move is attributed to the fact that futures on a regulated US exchange provide funds with a way to take a position without holding the coin directly, which matters for institutions whose mandates bar them from custodying crypto directly. This also gives market makers a hedging venue, which usually tightens spot pricing.
According to Alex Kuptsikevich, senior analyst at FxPro, this is a temporary shift of speculative capital from Bitcoin into altcoins. He noted that many investors had parked their crypto-allocated capital in Bitcoin, the most liquid asset class, and are now seeking more profitable opportunities.