Bitcoin Price Reaches New Maximum Seeing the Futures Trading from CBOE and CME

Published on 06 Dec. 2017
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On December, 6, the price of Bitcoin reached a new record high - around $12780/BTC, growing for almost $1000 during the 24 hours after the previous maximum of $11858/BTC, and soon after that overcoming the mark of $12000/BTC.

The rate grew right after the announcement from the CBOE about the release of futures as soon as December, 10. The market has reacted optimistically on the reports of CBOE and American Bitcoin exchange Gemini about adding Bitcoin futures. CBOE is one of the biggest exchanges, and listing of Bitcoin futures will cause the growth of cryptocurrency liquidity. 

Today, professional investors, major hash funds, and institutional investors are limited to three instruments for investments in Bitcoin: Sweden Nordiq Nasdaq that added to the listing the exchanged traded notes (ETN) of Bitcoin from the XBT provider; Grayscale Investment’s Bitcoin Investment Fund (GBTC), and LedgerX Commodities and Futures Trading Commission (CFTC) – the regulated options of Bitcoin futures. 

Almost simultaneous launching of Bitcoin futures by the two leaders on the derivative market – exchanges CBOE and CME – will quickly provide institutional and retail investors with the sufficient liquidity and reliable infrastructure for the investments to Bitcoin. 

In his official corporate declaration, the head and CEO of CBOE Global Markets Ed Tilly announced that CBOE futures would be provided for free at the initial stage, to facilitate the use of Bitcoin and investments in it: 

Considering the unprecedented interest to Bitcoin, we have to provide clients with the trade tools to help them express their views and hedge their influence. We aim at encouraging the validity and liquidity of the Bitcoin market. To promote it, we will start with the free offering of XBT futures.  

Some media resources and large investors assumed last week that the price of Bitcoin could react negatively to the futures launching since it would be way more profitable to play against market by opening short positions on Bitcoin. 

However, if it had been that way, the Bitcoin price wouldn’t have been increasing at an exponential rate during the last weeks, and wouldn’t have overcome the mark of 12 000 dollars. 

As many experts, and Coinbase CEO Brian Armstrong among them, have marked, the launching of Bitcoin futures and other financial instruments for the institutional investors, who are oriented on Bitcoin, will allow injecting more than 10 billion dollars to the Bitcoin market. 

If the price of Bitcoin reduces in the next few days, it will probably be caused by the quick rise of its rate and the stabilization of the market. Often, as the Bitcoin price chart shows as far as from 2014, the price of cryptocurrency tends to experience a serious correction after the reaching the new record high, and restoring to the previous maximum to initiate a new growth.   

In a short-term perspective, the price of Bitcoin will most likely grow, especially on the 10th and 18th of December, when the trading of CBOE and CME futures starts.

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