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The Bitcoin price climbs 20% per night as a future volume of CBOE Skyrocket

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The price of bitcoin surged more than 20% overnight, thanks to the launch Chicago Options Exchange Board (CBOE) bitcoin futures trading platform.

According to CryptoCompare, the cryptocurrency market data provider, the price of bitcoin has gone from $ 13,400 to $ 16,315 in the last 24 hours.

Major factor: Bitcoin futures

Contrary to the claims of several analysts, the IPO of bitcoins by CBOE, the largest stock market in the global financial market, was a decisive factor in the recent price course. bitcoins. Many investors in the market expect that the price of bitcoin will increase further in the coming months, as tens of billions of dollars in institutional money penetrate the bitcoin market.

In an interview with Business Insider Greg Dwyer, Business Development Manager at BitMEX, said that the price of bitcoin could exceed $ 50,000 by the end of 2018 Like the billions in institutional currency, the stock market valuation of bitcoin will probably reach $ 1 trillion in the medium term.

"Now, looking at the current market capitalization of bitcoin at $ 300 billion, with more institutional money, we could see market capitalisations reach $ 500 billion, which could – or even $ 1 trillion – increase the price of bitcoin from $ 15,000 to $ 20,000, $ 25,000 or even $ 50,000, said Dwyer

Dwyer also pointed out that the listing of bitcoin futures by the world's largest and most liquid stock exchanges such as CBOE, CME and Nasdaq in the first quarter of 2018 would further stabilize the market. bitcoin, allowing it to evolve into a major asset class.

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In the long run, if bitcoin can maintain its current growth rate, cryptocurrency will compete with existing assets such as gold and penetrate into a multi-billion dollar industry in the offshore banking market, given the support of Bitcoin. by the traditional finance industry and investors within it through the bitcoin futures.

Sharing the same sentiment as JPMorgan's global market strategist, Nikolaos Panigirtzoglou, Dwyer added:

"This is a big endorsement for the digital currency trading space.We could see more flows coming in and also, not only that, but futures are helping to cushion and reduce volatility Therefore, this could help stabilize bitcoin as an asset class.And essentially increase the utility function of it as a source of economy – as a method of economic transactions. "

What happens next?

The arrival of large institutional investors, retailers and hedge funds in the bitcoin market will trigger a domino effect on all major stock exchanges of major bitcoin markets. Demand for bitcoins in markets such as the United States, Japan and South Korea will increase rapidly as traditional financial sector institutions rush to invest in bitcoin and provide services around cryptocurrency.

Already, CBOE has begun to demonstrate difficulties in facilitating the rapid increase in demand for bitcoin from the traditional financial industry. Earlier in the day, the CBOE website and its online trading platform were not accessible for several hours, only within three hours of the announcement of future bitcoin.

In the short term, the price of bitcoin is expected to climb to $ 20,000, as Dwyer and prominent investors like Max Keizer and Mike Novogratz have pointed out.

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