Market concerns that perpetual contracts will disrupt traditional exchange business, with both ICE and CME seeing “oversold” conditions

robot
Abstract generation in progress

BlockBeats message. On June 27, this week’s shares of Intercontinental Exchange (ICE) and CME Group (CME) were oversold, with both having an RSI of 24.4. Typically, an RSI below 30 is considered oversold, which may mean a short-term rebound. An RSI above 70 is considered overbought, which may pose a risk of a pullback. Investors dumped exchange-operator stocks mainly because the market is worried that new trading products such as perpetual contracts could affect traditional exchange business.

Previously, CME filed a lawsuit against the U.S. Commodity Futures Trading Commission, arguing that the latter allowed the prediction market platform Kalshi to offer Bitcoin perpetual contracts at the end of May. CME fell 10% this week, Intercontinental Exchange fell more than 7%, and both saw their cumulative declines in June reach double digits.

KALSHI-0.93%
BTC0.72%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned