Bitcoin futures tumble 13%, trigger trading limit

Bitcoin futures on the CME Group exchange reached the 13% limit down level on Wednesday after the price of the world’s largest digital currency …

Bitcoin futures on the CME Group exchange reached the 13% limit down level on Wednesday after the price of the world’s largest digital currency tumbled to a fresh 2018 low. According to a spokesperson from the CME, the pause came just before 2 p.m. Eastern Time where a two-minute observation was initiated. Should futures BTCX8, -14.96% fall 20%, a hard limit is enforced, meaning contracts cannot trade below this level. After a subdued two months of trading, spot bitcoin BTCUSD, -13.33% prices fell as much as 15% on Wednesday as traders bailed on their long bets once a key psychological level was breached. “From a technical analysis standpoint, as bitcoin’s price falls below $6,000 we’re seeing liquidation: stop-loss orders automatically going into effect and/or people trying to play the breakout,” wrote Mati Greenspan, senior market analyst at eToro.

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