The Reason Behind Bitcoin Price Hitting The $7,000 Mark
Bitcoin price in its usual upward rise has not disappointed by hitting the $7000 mark. The community of the most popular digital currency celebrated on this development. The spike is not slowing down soon but what can you attribute as the reason for the recent rally?
The obvious factor behind the rally can be traced to the announcement made by Chicago Mercantile Exchange to trade Bitcoin futures.
First, the question should be asked what Bitcoin future is and why it is causing so much ripples on Wall Street, Main street and even on the Bitcoin price itself?
Looking at What Is Coming Ahead
Futures are major parts of mainstream investment and trading but they are more about less volatile and stable assets. From this, it can be deduced that Bitcoin is getting that legitimate appeal somehow and this is why Wall Street is getting the more interested.
Wall Street has a significant part to play on the Bitcoin price regardless of their opposing ideologies and views on the digital currency in the past.
August 1st saw the rise of Bitcoin price earlier on. The reason for this can be linked to Wall Street going for Bitcoin after the fight on its legitimacy issues were over.
This step taken by the CME has given Wall Street a reason to trust Bitcoin, hence, causing the spike and rise in its price.
Still Too Young
Bitcoin’s getting into mainstream trading though a good one but it should not be forgetting that the digital currency is yet of age when talking about mainstream trading and investment.
Adoption en masse for trading is a long way from here with more room for ETFs to make things more open. This is still far ahead.
SEC has remained resolute in its position on Bitcoin’s ETFs, not seeing anything positive happening soon but is observant on issues of volatility and its nature.
The Rise and Fall
Bitcoin price went as high as $7, 300 but fell quickly by $500 in a little corrective move. Meanwhile, it has gone up now to over $7,000.
Though in the Bitcoin world, this spike doesn’t really mean much, however, this is what SEC dislikes about its price changes.
SEC holds that the concept of Bitcoin has some flaws that are fundamental. This, SEC believes makes it a dangerous asset to forcefully include into a trading structure in an exchange.