The Chicago Mercantile Exchange has announced the launch of the CME CF Ether-Dollar Reference Rate and Real-Time Index in partnership with UK-based digital asset exchange Crypto Facilities. The two new indexes will track the price movement of ETH, delivering real-time updates in USD.
According to a press release published on the 14th of May, the CME CF Ether-Dollar Reference Rate will provide a daily benchmark price in USD at 4pm London time. CME CF Ether-Dollar Real-Time Index will provide a real-time Ether price in USD.
The new indexes will be based on order book activity and transactions collected from cryptocurrency exchanges Kraken and Bitstamp, with “the oversight of the products is managed by an independent committee that sets forth a code of conduct and meet to review the practice standards.”
Tim McCourt, the Managing Director and Global Head of Equity Products and Alternative Investments at CME Group outlined the purpose of the new index:“The Ether Reference Rate and Real Time Index are designed to meet the evolving needs of this marketplace. Providing price transparency and a credible price reference source is a key development for users of Ethereum.”
Ethereum Futures Yet to be Confirmed
Despite establishing the new indexes. CME has stated that it does not yet plan to launch Ethereum futures in the near future. The CME Group was the first organization to begin offering Bitcoin futures in December 2017, but states that “the focus right now is on the index itself.”
Crypto Facilities, a UK-based digital asset exchange that has partnered with the CME Group in order to establish the indexes, has already taken the initiative to launch Ethereum futuresthemselves. The exchange launched ETH futures on the 11th of May as part of a plan to “bring greater efficiency and liquidity to crypto markets.”
Dr. Timo Schlaefer, the CEO of Crypto Facilities, commented on the launch of the new indexes:
“Ether, the second largest cryptocurrency, experienced incredible adoption and growth in 2017, evolving into the leading blockchain for smart contracts. We are excited to be contributing to the strong community that has developed around the Ethereum network by providing a reliable reference rate and real-time Ether-Dollar price.”
The CME Group is currently working alongside Crypto Assets and a number of industry experts to in the Bitcoin Oversight Committee, which is responsible for overseeing the new reference rates.
Chinese School Principals Caught Mining Ethereum At Work
Two principals at a Chinese school got in hot water after stealing power from the institution to mine the ethereum cryptocurrency.
According to a report from Hong Kong news outlet HK01 on Wednesday, Puman Middle School in Hunan province had been experiencing higher than normal noise levels from its computers over recent months, even on the holidays. The school’s IT network had also significantly slowed, while electricity consumption had almost doubled from July to November.
The school’s general manager had initially put the energy usage spike down to overuse of air conditioners, but an investigation revealed that that the school’s principal, Lei Hua, and vice principal, Wang Zhipeng, had installed nine computers worth around $7,000 in total to mine the ethereum cryptocurrency, the report states.
HK01 indicates that the principal had initially set up the mining machines at his home, but was dismayed at the electricity costs incurred as a result. So, he installed the machines in a school dormitory and effectively stole the required power.
The school reportedly lost electricity to the value of $2,163, for which the principal has been punished and removed from his post at the school, as well as within the Communist Party. The vice principal was given a warning.
While no institution is likely to allow employees to use their facilities or power to mine cryptos, that hasn’t stopped some from trying.
Back in March, a state employee at Florida’s Department of Citrus was arrested for allegedly using official computers to mine cryptocurrencies. At the same time, Louisiana’s attorney general was investigating a group of former staffers for the same offence.
And last year, a former employee of the Federal Reserve Board of Directors was fined $5,000 and put on probation after being caught mining bitcoin on a server owned by the U.S. central bank.
Mining farm image via Shutterstock
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Recovery in Doubt as Bitcoin Price Drops Out of Bullish Channel
Bitcoin is painting a less bullish picture than 24 hours ago, following a drop out of an ascending price channel.
Stepping back, the leading cryptocurrency picked up a strong bid at $6,200 on Oct. 31, keeping the crucial 21-month EMA support intact. Further, it witnessed a symmetrical triangle breakout earlier this week, suggesting that bulls had come out victorious in a tug of war with the bears.
The breakout had looked legitimate as the technical indicators turned increasingly bullish. In particular, the relative strength index rose to a three-month high of 59.00 yesterday, signaling strong bullish conditions.
As a result, BTC was expected to remain well bid above $6,500 and looked likely to rise to $6,800 in the near-term.
Instead, it fell back to $6,450 on Coinbase earlier today, invalidating the bullish higher lows and higher highs pattern, as seen in the chart below.
The rising channel seen in the hourly chart has been breached to the downside, meaning the recovery rally from the Oct. 31 low of $6,201 likely ended at a high of $6,540 reached yesterday.
The stacking order of the 50-hour exponential moving average (EMA) above the 100-hour EMA, above the 200-hour EMA indicates the path of least resistance is still on the higher side. That bullish signal could soon weaken, though, as moving averages are lagging indicators.
While the channel breakdown has opened the doors for a deeper drop to $6,372 (horizontal support line), a bearish reversal would be confirmed only if BTC drops below 6,200 (Oct. 31 low).
Over on the daily chart, BTC bears may feel emboldened if prices drop below $6,200, negating the higher low pattern. That scenario seems unlikely with bitcoin’s current lack of volatility, however.
Investors should keep an eye out for a strong bounce from the ascending (bullish) 10-day EMA, as that could recharge the engines for a rally to $6,800.
- The immediate bullish outlook has been neutralized, courtesy of a rising channel breakdown on the hourly chart.
- BTC may experience a deeper drop to the hourly chart support of $6,372. A violation there would expose the recent low of $6,200.
- Wednesday’s high of $6,540 is the level to beat for the bulls. A break above that level, if confirmed, could yield a rally to $6,800 (October high).
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via CoinDesk archives; Charts by Trading View
Polymath Price Continues Push to Reclaim $0.3 as a new Support Level
After a somewhat lengthy bullrun, it seems most
markets are suffering from a slight correction. In some cases, the losses quickly mounted up to nearly 4%, which is quite steep. Further down the market cap rankings, Polymath is still doing a good job. The altcoin remains in the green in both USD and BTC value, at least for now.
Polymath Price Surge Isn’t Over
It is quite refreshing to see at least some currencies retain their positive momentum. It was a matter of time until all major markets saw a correction. A multi-day uptrend has not been sustained in this industry throughout most of 2018, and this latest run is no different in that regard. At the same time, there is still room for further upward momentum despite this brief correction.
Over the past 24 hours, the Polymath price has risen by another 7% and change in USD value There’s also the strong uptrend against Bitcoin – +8.2% – and Ethereum – + 10% – to take note of. All of these changes seem to indicate POLY is in a very good place right now, despite having a trading volume of just $8.4m.
For speculators of POLY, liquidity plays an increasing role of importance. More exchanges offering trading markets pertaining to this altcoin is always a good chance. While HotBit might not be a big exchange by any means, they do allow for ETH and BTC trading against Polymath.Those who seek some advice in the technical analysis department may not necessarily like what they see in this department. There is still a bullish signal forming across the charts at this time, although that doesn’t automatically result in a further gain whatsoever. A very peculiar market to keep an eye on in this regard.
Wally530 Offers a slightly different take on things, although his charts date back a few hours. It would appear the current Polymath uptrend falls well within the range projected on this chart, albeit breaking out from the channel in a positive manner may take a while. If all other markets begin to recover, POLY can catch a second wind from that momentum as well.Given the current state of all major markets, it appears to be a time until Polymath either gets its own correction or surges to $0.3 again. All markets are at a pivotal point right now, yet the general direction remains rather unclear. For the Polymath price, things are looking pretty good, although the trading volume is still a bit weak.