Bitcoin Futures Launch Date Now Set As Price Surges
On Wednesday, Bitcoin officially went “mainstream.” Social media posts regarding cryptocurrencies were inundating Facebook and signups to Coinbase were so intense, the website and app intermittently crashed a number of times. For the largest Bitcoin exchange in the world, Coinbase endured some expected growing pains. Following the surge of Coinbase users was a Bitcoin correction, or crash, depending on who you speak to, which saw Bitcoin prices drop from over $11k to $8.5k. It was Bitcoin volatility at its finest, likely a result of Bitcoin day traders taking profits.
The past few days worth of volatility in price likely shook up some of the fresh herd, who just learned how to buy Bitcoin. It likely didn’t feel great to invest a few hundred dollars in Cryptocurrency, only to see your investment quickly tank. But in some ways, this potentially prepared new Bitcoin investors for the ride ahead, which will likely be just as volatile as ever.
This morning, Bitcoin resurrected itself, hitting a top price of $10,700. This off the news that CME has declared an official date to issue Bitcoin Futures. So yes, Bitcoin Futures are now an actual thing. Chicago Mercantile Exchange officially set the date of December 18th as the issuing date, something the Chicago Board Options Exchange agreed to. This all remains tentative, however, the likelihood of Bitcoin Futures being issued is now all but certain. And investors are now realizing that real Wall Street money is about to pour into the cryptocurrency market. Cryptocurrency values rise or dive based on the amount of investment and trading within it. Bitcoin Futures all but assures a new influx of heavy trading.
Additionally, CFTC gave an approval for bitcoin binary options to the Cantor Exchange (Cantor Fitzgerald). This is a direct signal to Cryptocurrency investors that the U.S. Commodity Futures Trading Commission is not going to interrupt Bitcoin’s introduction to Wall Street. This new mainstream money could stabilize a typically volatile Bitcoin, as well, serve to enhance value across all Cryptocurrencies, including Litecoin and Ethereum.
If you are fresh to the Cryptocurrency market, make sure you read my how to move Bitcoin from Coinbase to Trezor article. This will help you understand how to secure your Cryptocurrency holdings beyond Coinbase.
CFTC issued warnings to potential investors of Bitcoin regarding Bitcoin’s known volatility. The bigger story, however, might be that Bitcoin Futures are likely to pave the way to a full-blown Bitcoin ETF. Recall, both the Securities and Exchange Commission and the U.S. equities trading watchdog declined Bitcoin’s ETF proposal due to volatility and because it had no prior wall street inclusions. Bitcoin Futures are the missing piece in terms of wall street inclusion. This may be the first step in getting the Bitcoin ETF approved.
Bitcoin trading is up this morning from the news of Bitcoin Futures. They still haven’t recovered to their previous high of $3.5k. However, with surging Coinbase users and a growing sentiment that Bitcoin is here to stay, a new high is likely to come within days. Bitcoin, unlike stocks and bonds, can be traded 24 hours of every day. And the Asian markets tend to spike it the most, which happens to be after dark in the United States. The news will hit Asia in a matter of hours, which may lead to new price surges.
If you’ve been sitting on the sidelines considering whether or not to invest in Bitcoin, now is the time to decide. The price is likely to continue to surge. And where Bitcoin goes from here is anyone’s guess. But one thing is certain, the term “early adopters” might well end up being redefined after December 18th.
Photo by Dave Center
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.
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