This week, the Bitcoin price, on its usual bullish trajectory, barely winked when it crossed the $ 7,000 mark. The Bitcoin community, celebrated as the king of digital currencies, shows no signs of slowing down, but what's behind this latest rally?
The announcement of Chicago Mercantile Exchange's decision to offer Bitcoin futures.
First of all, what is a bitcoin future and why does it provoke such a craze on the main street, Wall Street, as well as on the price Bitcoin.
Let's Put Things on the Horizon
Futures are an essential part of the main street trade and investment; However, they are also reserved for more stable and less volatile assets. Now with this decision, Bitcoin is somewhat legitimized, which has further stung Wall Street's interest.
Wall Street, despite their division and ideological opposition, still has an important role to play in the Bitcoin price as the financial bastion has already shown its influence.
After the August 1st fork, Bitcoin hit a massive rally that was attributed to the Wall Street flood in Bitcoin once the heat was removed from the so-called 'Civil War' ".
once again given Wall Street more reason to trust Bitcoin and so the demand skyrocketed, with the price.
Still in its infancy
The entry of Bitcoin into mainstream commerce, is also a poignant reminder that digital currency is still in the layers when it comes institutionalized trade and investment.
Massive adoption on a large scale in commerce has a long way to go as there is still room for ETFs in place, but it is far away
The SEC has maintained its position on a Bitcoin ETF, stating that it is not on the cards while they continue to monitor its volatility and its nature.
Spike and drop
The Bitcoin rally reached $ 7,300, but it quickly dropped by more than $ 500 in a mini-fix. However, it has stabilized again at over $ 7,000
While in the world of Bitcoin this does not seem to be a massive swing, it is these movements that the SEC does not have. do not like.
The SEC noted that Bitcoin had "fundamental flaws" that made it a "dangerous asset class to force into a publicly traded structure."