Bitcoin’s price surges to over $17,000 as the currency begins futures trading
Bitcoin’s price surges to over $17,000 as the currency begins futures trading
This show of confidence in the currency has caused the value of Bitcoin to reach over $17,300 at its peak today, with futures trading acting as a step towards legitimising the currency. Other financial experts are calling Bitcoin an economic bubble, with Paul Donovan, an analyst at UBS, stating that “Ignoring the bubble is the best course of action“.
Bitcoin’s launch on the CBOE futures market was made possible because of the approval of the US Commodities and Futures Trading Commission (CFTC), with several organisations criticising the organisation decision due to the abnormally large risk that Bitcoin represents. The CFTC has warned investors that Bitcoin presents a “potentially high level of volatility and risk”.Â
During this first day of trading, the CBOE has suspended the trading of Bitcoin twice due to prices fluctuating by over 10%. This reaction is part of the CBOE’ standard operating procedure to reduce wild fluctuations in price.Â
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Today Bitcoin’s price remains unstable, presenting an opportunity for traders to gain or lose vast sums of money in today’s market. Many fear that it is only a matter of time before Bitcoin prices plunge, though like all systems bubbles it is unknown exactly if or when the bubble will burst.Â
You can join the discussion on Bitcoin’s prices surging after it hits the futures market on the OC3D Forums. Â