The price of Bitcoin bounced back from a 4pc fall that followed the launch of a new set of futures in the cryptocurrency by the world's largest exchange provider CME in Chicago. This led a brief rally in the bitcoin spot prices which pushed through the $19,000 for a brief while before correcting lower and it now trades in the mid 18000s region as of this writing. On the first day, the CBOE's Futures Exchange traded almost 4,000 contracts during the full session. Contracts for February, March, and June all traded around US$20,000 at the same time.
Already, many investors and traders have started looking forward to the next year which many believe, would see the BTC prices continue higher.
CME traded 590 contracts on its debut.More news: American Eagle Outfitters (NYSE:AEO) Upgraded at ValuEngine
The contract was last at $18,960, some way off the $19,500 reference price set by the exchange for the January contract. The bitcoin futures at the CBOE was trading at $18,890, registering the raise of 4.3 percent.
The price of bitcoin is surging to $20,000.
A copy of bitcoin standing on PC motherboard is seen in this illustration picture, October 26, 2017. It was trading around $1,000 below that on Monday at $18,500, down nearly 3 percent on the day. For many, the launch of bitcoin futures is a major step in the digital currency's path toward legitimacy.More news: UN Security Council to meet on US Jerusalem decision
"We saw a nice open on light volume, but pretty uneventful so far", Spencer Bogart, partner at Blockchain Capital LLC, said shortly after trading began on Sunday. The CME's futures will track an index of bitcoin prices pulled from several private exchanges.
Electronic brokerage firm Interactive Brokers Group Inc IBKR.O earlier this week said it is offering bitcoin futures under the ticker symbol "GXBT" on the CFE and plans to offer the same on the Chicago Mercantile Exchange (CME) from December 18.
But the velocity of bitcoin's moves higher this year, with an nearly twentyfold increase since the start of January, has also led to an increasing number of warnings about the dangers of investing in an immature, opaque and largely unregulated market. Such currencies are not tied to a bank or government and allow users to spend money anonymously. That makes its "market cap" greater than that of either Facebook or Amazon.More news: Prince Harry and Meghan Markle announce wedding date
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