Sunday was a great day for Bitcoin. The virtual currency surged and is getting closer to the $17k mark. A lot of this had to do with the Chicago-based bitcoin futures trading that began yesterday. The surge during the past day has been somewhere around 17%. And even though Bitcoin was back from its early high of $18k a couple of days ago, the price had a correction.
At around $16,400, Bitcoin’s price has surged by over 1500% since the start of 2017. That basically means that two Bitcoins at the beginning of this year (January 1st) at $973, you would now have more than $33,000.
According to backers, the Bitcoin futures trading is a great way to expand the use and legitimacy of the world’s largest cryptocurrency. Even though many critics warn the risk of being a bubble, Bitcoin’s price proved that it is a great way to invest and double your investment in a couple of months only.
The launch of Bitcoin futures trading has caused an early outage of the CBOE.O website (the official market’s website). The exchange said that due to high traffic, their online presence ‘may not be temporarily available’.
Bitcoin’s contract opened at 6pm and made the price rise from $15,460 to a high of $18,700. However, there was a correction as of 6:30 GMT with around 2,368 contracts added. The futures are basically cash-settled contracts that are based on the auction price of a bitcoin in US dollars on the Gemini Exchange, owned and operated by the Winklevoss brothers.
According to market participants, there will be no volatility in the cryptocurrency because of this futures trading launch. As the president of the Bitcoin Association of Hong Kong said,
“There are no ways to arbitrage between the market and other exchanges, CBOE cannot settle Bitcoin as far as I know,” he said, adding that “regular bitcoin traders don’t have access to it, and the trading desks that use the futures market don’t have access to bitcoin”.
At this point, Bitcoin’s price is only expected to rise. What do you think of the situation?
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post