Bitcoin Forum

Bitcoin smashes through $6,600 to new record high after CME announces plans for futures contracts

   - The price of bitcoin surpassed the $6,500 and $6,600 barrier in one day to hit a new record high
   - The move higher was boosted after the CME announced plans to launch bitcoin futures
   - CME's plans could bring more institutional investors into the bitcoin market.

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Bitcoin surpassed $6,500 and $6,600 on Wednesday to hit a new record high after the CME announced plans to launch bitcoin futures later this year.

The price of the cryptocurrency hit a high of $6,600.84 just hours after breaking through the $6,400 barrier, and minute after moving past the $6,500 mark, according to data from industry website CoinDesk. Its market capitalization, or the total value of bitcoin in circulation, hit $110 billion.

On Tuesday, U.S.-based exchange CME said it would introduce bitcoin futures contracts this quarter, subject to regulatory approval.

"We've been working with the regulator. They understand our application. And they understand our model very, very well," Terry Duffy, CME Group chairman and CEO, told CNBC.

The introduction of such a product could bring more institutional investors into the market. It's believed that this is helping to boost the price.
 
The bitcoin futures contract will be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), which CME launched in November 2016 with London-based digital trading platform Crypto Facilities. The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.

Favorable regulation has often been a catalyst for the bitcoin price to rise. For example, bitcoin saw a boost when Japanese authorities allowed shops to begin accepting bitcoin as payment earlier this year.

Still, digital currencies have also got their fair share of criticism. JPMorgan Chase CEO Jamie Dimon has called bitcoin a "fraud" and threatened to fire anyone in his company that trades it. Meanwhile Larry Fink, CEO of BlackRock, called bitcoin an "index of money laundering."

Some regulators have also cracked down on bitcoin trading. China recently banned crytocurrency exchanges, for example.

But the negative news has been mostly shrugged off by investors. Bitcoin is up over 500 percent year-to-date.


Source: https://www.cnbc.com/2017/11/01/bitcoin-price-hits-6500-to-new-record-high-after-cme-futures-plan.html

It seems to me that this is only the beginning of a rapid rise. On the one hand it is good, but on the other hand, this increase in prices will lead to a rapid increase in the popularity of bitcoin. This will positively affect the price, but will accelerate the attempts of the state to regulate the market of bitcoin. If users will have to pay tax on bitcoin this can reduce our income by at least 20%

Well, I am the one who cashed out a whole bitcoin at the price of 1000$, I think you can imagine how do I feel myself now. Honestly I didn't expected bitcoin will climb over 3000$ this year, all prognoses and talks on the forum where about such sum, but bitcoin doesn't stop to surprise and 7000$ by the end of the year doesn't seem so hard to reach now, I would even predict 8-9000$ in December.

Many people still says Bitcoin is a bubble and it is still not popping yet, maybe there are true and maybe not but one thing is for sure now, I don't see any reason for the Bitcoin's price to go down as of now because it just finished the Hard Fork of Bitcoin Gold and the people are getting used to the upgrades of the splitting of it and the fraudsters that is saying too much hate on Bitcoin is just a normal days for the investors to deal with so Bitcoin will still continue to grow and at the same time it getting stronger day by day.

You know why the price after the fork is always growing? I don't understand. If you have a piece of gold and he separated a small piece of the whole piece should cost less. This is evidenced logic. Why not your piece is worth more than bitcoin? You say that it is a pattern but I can't give a logical explanation for this phenomenon. That's why bitcoin is not predictable and we never know when it will burst unless it bubble.