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Bitcoin backers believe the launch of bitcoin futures will encourage cryptocurrency adoption, bringing transparency and legitimacy to the market.
The price of the world’s main digital currency escalated above $17,000 today after a debut of bitcoin futures on the Chicago Board Options Exchange (CBOE) on Sunday. The surge follows sharp price movements the cryptocurrency recorded last week.
Bitcoin has been rapidly growing since the beginning of the month, when the digital currency was worth about $10,000. Its price climbed to more than $18,000 on Friday, before falling by over 20% on the same day. The decline continued until Sunday, when the price of bitcoin fell to as low as $13,300.
Still, the cryptocurreny managed to regain its value today’s morning, rising past $17,000 per coin on the launch of bitcoin futures trading. The digital currency is currently valued at $17,239, according to CoinMarketCap.
Bitcoin futures rose by 25% in the first day of trading, causing two temporary trading halts used to control the market volatility. Meanwhile, significant traffic triggered temporary outages and delays on the exchange’s website, which, however, didn’t affect trading systems. As CBOE wrote on Twitter, more than 800 contracts were secured in the first two hours since the start of trading.
Trading was stopped for two minutes after a 10% growth from the opening price, and for five minutes after a 20% surge. According to CBOE, another five-minute halt will take place if the growth exceeds 30%.
The January futures prices surged from an opening level of $15,000 to $18,270, as CNBC data shows. Meantime, contracts expiring in February and March are now trading at $18,440 and $18,640, respectively.
CBOE is the first trading platform in the United States to offer bitcoin futures. Still, another exchange, the Chicago Mercantile Exchange (CME), is planning to trade bitcoin futures starting next week. Also, NASDAQ is considering the future launch in early 2018.
Overall, there has been a positive reaction to the launch of bitcoin futures trading. Cryptocurrency users believe the move will help to legitimize the use of the digital currency and make it less volatile.
According to Standpoint Research’s analyst, Ronnie Moas, bitcoin has all the chances to reach $100,000 in the near future.
Amazon went from $40 to $1200 even though shorts tried to hit this since 1997. Im not worried about NY/CHI manipulation. $BTC now has a $270 bln valuation & is a top 20 #currency vs > 180 currencies / #bitcoin is now @ a point where it cant be easily manipulated / $100K or bust
— Ronnie Moas (@RonnieMoas) December 11, 2017
The launch of futures trading is a major milestone for bitcoin as investors are now looking to trade alternative assets through a regulated market. Besides, it is expected to facilitate the cryptocurrency’s mainstream adoption.
However, some financial industry players, like JP Morgan head Jamie Dimon, who recently called bitcoin a fraud, are skeptical about the future of the world’s leading virtual currency.
A number of countries have already launched a crackdown on the use of bitcoin amid concerns regarding money laundering, tax evasion, and risk of hacking attacks.