On Friday, a team of analysts from JPMorgan Chase, the largest bank in the United States, said what they believed is the reason for the unusual surge of crypto activities in the past few days. According to chief analyst Nikolaos Panigirtzoglou, the sudden shift in the behavior of investors was catalyzed by the Chicago Mercantile Exchange’s (CME) upcoming Bitcoin options.
Notably, CME’s Bitcoin options contracts would be officially launched on January 13. As noted by Panigirtzoglou, the exchange’s existing BTC futures played a significant role in hyping up the investors’ interest.
JPMorgan’s observation, as noted by Bloomberg on its January 10 report, is a far cry from what happened to Bakkt, one of CME’s rivals in the industry. Despite the high anticipation before the launch of its Bitcoin options in December, it was met with relatively small volumes of transactions from investors before eventually gaining stable traction.
It’s worth noting that before launching BTC options, Bakkt released its Bitcoin futures in September last year. As noted by industry analysts, the launch was met with a bearish attitude. Notably, it mirrored the same reaction of investors to CME’s similar product, which was launched in 2017. But while both market introductions have undergone a period of low volume, experts noted that Bitcoin futures have already turned the tables.
However, JPMorgan’s report suggests no connection between the uptick in BTC futures activities and the trading price of BTC and USD. Nonetheless, the pair exhibited a significant rise, coming from $7,300 last weekend to over $8,400, which is considered a local high. Meanwhile, other commentators in the industry believed that the price surge could be attributed to the ongoing political turmoil in Iran.