On February 28, the Chicago Mercantile Exchange (CME) announced that it will launch the future contracts (Sol) pending a review by the United States financial organizers.
This will allow the market participants to obtain future contracts in its small contracts of up to 25 SOLs and the model contracts to 500 Sol and are settled in cash.
Put off Expand The current CME Group of cryptocurrency derivatives, including Bitcoin and Eter Futures, which attracted demand between institutional and retail investors looking to hedge from their risks in the very volatile digital asset market.
By launching Solana Futures, CME Group enhances its commitment to providing a wide range of investment products in organized encryption that meets the changing needs of market participants.
It provides an alternative path, similar to keeping stocks in blue technology companies, for traditional financing investors for exposure to the assets category without keeping any of the assets directly, which is one of the leading Blockchain networks.
The group expects this procedure to help attract new capital to encryption markets, enhance liquidity, and install prices.
However, the Solana Futures menu suggests an increased major acceptance of encrypted currencies after the institutional interest in digital assets. Contracts that are connected to the cash enable traders to bet on the price of Solana or the open hedge within an organized framework, which may help bridge the gap between traditional financing and the emerging digital economy.
The high prices of Solana after the CME FUTERES declaration
The Solana price increased by about 17 % on February 28, when it jumped from about $ 125 to almost 146 dollars, after announcing the future contracts (SOL) to go live in March. This sharp increase reflects the renewed interest of the investor and optimism surrounding the derivatives subject to the original.
However, Seoul kept a strong landing tension throughout February. It has lost 46 % since the beginning of the month after it reaches $ 233. The conditions of the broader market, dealers reservation profits, and the total trends of the macroeconomic economy that affected the encryption industry led to this continuous measure of prices.
Currently, the Sol price is traded significantly less than the 200 -day SIA moving average, a basic dynamic support level indicating the general trend of the long -term direction. If the assets are trading less than 200dma, this generally provides the feelings that merchants exceed on the original.
Moreover, according to technical indicators, Sol looks close to the price of the price. The RSI is now 33 years old, higher than the sale level 30. This level of the relative strength index indicates that the sale momentum may run out of steam and be prepared for a reflection if the benefit is returned on the purchase side.
Since the market digests the effects of the launch of the future contracts of the CME GROUP Group, investors will be keen to know if this trend brings a new new momentum for SOL price procedures or if the broader market patterns continue to reduce Sol prices.
New liquidity is required for the recovery of the encryption market
Liquidity is for financial markets what is oxygen to diver. Life artery for its survival and growth. However, the lack of vital flows of the new capital and even crystallizing the encryption gathering, which was originally gained more broadly when US President Donald Trump won his re -election there. New money must come until the price is paid up, but when it does not happen, it leads to stagnation of digital assets or corrections.
In encryption, liquidity was historically a major driver for market cycles. Therefore, Bitcoin is the most dominant cryptocurrency and its dependence and will be the first to bring money. When the bitcoin price increases, it usually increases the confidence of the institutional investor and the retail investor. With the high price of bitcoin, the money usually begins to flow to the large altcoins such as ETHEREUM and Solana, which is more stable but still provides a much better percentage of Bitcoin risk.
Over time, when market participants ask for greater gains, capital rotates to increase the risk curve to medium -sized altcoins and smaller gains. More volatile of stocks, these assets tend to get larger returns in strong bull cycles. But this successive effect has stopped without new liquidity, and the market courses slow down, which prevents any wide operation.
In light of these dynamics, the capacity of the encryption market depends on restoring the bullish momentum on the flow of new capital, whether from institutional adoption, organizational developments, or total economic news that keep investors in developing risks. Until then, the market is likely to trade in the periods of monotheism and fluctuations related to the extent, as Bitcoin’s movements continue to mode the general direction.
According to the founder of Master Ventures Kyle Chassé, bitcoin prices are collapsing because hedge funds and institutional investors are looking to take advantage of the difference between instant BTC prices and futures prices are clicked from that trade where the price difference narrows.
Chasier said that the bitcoin biocalist needs new buyers and members who really believe in assets, and institutional investors who are chasing the return alone may not be sufficient.
However, a new research report from Matrixport claims that the continuous Bitcoin correction may continue until April at least, while giving the opposite winds to the macroeconomic.
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