Worried about Bitcoin's ups and downs? The world's largest futures exchange is about to be put on a "tight ring"

The world's largest futures exchange intends to put a "tight rein" on Bitcoin futures trading.

Documents from the Chicago Mercantile Exchange Group (CME) obtained by The Wall Street Journal show that the world's largest and oldest futures exchange plans to adopt intraday volatility limits for future Bitcoin futures similar to those for other futures such as crude oil, gold, and stock indexes.

The document shows that CME will limit the volatility of Bitcoin futures in three levels. When the intraday trading price rises or falls by 7% and 13% compared with the previous day's closing price, trading may be suspended for 2 minutes and then resumed. When the volatility reaches 20%, all-day trading may end here.

If the news is true, CME's Bitcoin futures trading volatility limits will be the same as the current E-mini S&P 500 index futures.

Bitcoin's trading price in U.S. dollars has increased more than six times this year, far exceeding the U.S. stock market, but its volatility is also significantly greater than that of the U.S. stock market.

For example, on September 14 this year, the trading platform Bitcoin China announced that it would stop all transactions on the 30th of that month. After that, the platform's Bitcoin RMB trading price once plummeted by 32% to 17,000 yuan. The international market Bitcoin USD trading price once fell by about 16%, approaching 3,250 US dollars.

Last week, CME announced plans to launch Bitcoin futures in the fourth quarter of this year. One hour after the announcement, the Bitcoin price in USD exceeded $6,400, rising by more than $150 in less than an hour. Huobi.com data showed that the Bitcoin price in RMB once reached 40,000 yuan.

Earlier, Wall Street Journal mentioned that on Tuesday, Leo Melamed, honorary chairman of CME and founder of the financial futures market, predicted that Bitcoin could become an asset class like gold and stocks.

We will manage Bitcoin, Melamed said. “We will tame it and make it a common trading instrument with rules.”

After Melamed made the above statement, the trading price of Bitcoin returned to above $7,200 for a time, and then fell back. As of writing, it has not yet reached $7,100, with a daily increase of more than 1%.