CBOE Bitcoin Futures Skyrocket the Coin’s price Overnight.
The value of Bitcoin jumped up to $16,315 during a single night, after the launch of Bitcoin Futures.
The price of Bitcoin has climbed up by more than 20% during yesterday night. The reason was the launch of Bitcoin futures from CBOE trading platform.
According to CryptoCompare, Bitcoin’s price jumped to $16,315 from $13,400 within the last 24 hours.
Many experts in the industry wait for the Bitcoin’s price to increase even more in the following months, a billion dollars of institutional money are coming into the cryptocurrency market.
Greg Dwyer, the business development leader of the exchange BitMex talked about the topic at Business Insider. He stated that Bitcoin’s price could reach the levels of $50,000 or more by the end of 2018. The leading cryptocurrency’s market capitalization is possible to reach $500 billion and eventually $1 trillion. This could skyrocket the coin’s value up to $25,000 or $50,000 according to him.
Also, he highlighted that the addition of Bitcoin futures by the largest exchanges of the world will stabilize the coin’s market. This will allow the virtual currency to evolve into a major asset class, allowing it to compete for current assets like gold.
ETF Bitcoin products are coming.
Furthermore, two ETF (exchange-traded fund) providers have filed with the U.S. SEC (Securities and Exchange Commission) to create ETF Bitcoin products that trade in digital currency derivatives.
However, neither firm plans to hold coins directly. Instead, the active manageable funds can trade derivatives products and futures contracts in order to profit from the price changes of the cryptocurrency.
The introduction of the first Bitcoin ETF would be a historic moment for mainstream virtual currency acceptance. It will make Bitcoin-related investment products more accessible to every retail investor that plans to invest in Bitcoin via his retirement and brokerage accounts. It’s also likely to increase further the leading cryptocurrency’s price into 2018.
However, the SEC rejection is possible to move the coin’s trend into the bearish territory.
What will happen next?
The entrance of big money investors, hedge funds, and retail traders, into the major crypto coin market, will greatly affect all major exchanges in the market.
In addition, the demand for Bitcoin from countries such as S. Korea, US and Japan is increasing at a rapid rate. Institutions and organizations are joining too in order to provide services in the digital currency.
In the short-term, this will likely lead to the increase of Bitcoin’s price close to the level of $20,000, as stated by prominent investors like Mike Novogratz, Max Keiser, and Dwyer.