The price of Ether (ETH), the crypto currency of the Ethereum network, broke a record again on February 9. Ether traded as high as $ 1,830 on Binance.
Ethereum Price Index: How many TL (ETH TL) for Ether?
Why is ether rising?
The start time of the Ether rally is important as the sentiment is negative before the CME initiates futures.
CME launched the first Bitcoin futures contracts in December 2017. Bitcoin crashed from $ 20,000 to around $ 6,000 in just weeks.
Many investors expected Ether to likewise fall in value after futures were launched.
However, there are two misconceptions in this theory: First, there is no evidence that CME’s launch of Bitcoin futures triggers a crash in the BTC price.
Second, apart from being provable, there is no reason why the launch of ETH futures should create an expectation of a decline.
There is a difference between 2017 and 2021: Institutional demand for Ether and cryptocurrencies in general has reached an unprecedented level. Finally, Tesla purchased $ 1.5 billion worth of BTC.
It is highly possible that institutional demand for Bitcoin will also trigger an increase in demand for Ether. Therefore, CME ETH futures can be a factor that will raise Ethereum in the long run.
Ethereum investor and researcher Ryan Seans Adams, stated that:
“CME has launched ETH futures. This is a bridge with organizations. It is the green light of US regulators. ETH is becoming a globally accepted commodity currency. “