The price of the bitcoin was risen overnight more than 20% due to the launch of the Chicago Board Options Exchange (CBOE) bitcoin futures trading platform.
The bitcoin price was increased from $13,400 to $16,315 within the past 24 hours according to cryptocurrency market data provider CryptoCompare.
In contrast to the statement of several analysts, The listing of bitcoin futures by CBOE, which is the global finance market’s largest options exchange, became a driving factor behind the recent bitcoin price upswing. The investors in the market are expecting that the price of bitcoin to increase in the coming months as there are tens of billions of dollars in institutional money flow into the bitcoin market.
Leading cryptocurrency exchange BitMEX business development head Greg Dwyer stated that the price of bitcoin could surpass $50,000 by the end of 2018, in an interview with Business Insider. He says that as with billions in institutional money, the market valuation of bitcoin may reach a trillion dollars in the mid-term.
“Now, looking at the current market cap of bitcoin as going to $300 billion, with more institutional money coming in we could see market caps go up to $500 billion, which could — or even $1 trillion — which could increase the price of bitcoin from now $15,000 up to $20,000, $25,000, or even $50,000,” said Dwyer.
Dwyer also strongly says that the listing of bitcoin futures by the world’s largest and most liquid exchanges such as CBOE, CME, and Nasdaq by the first quarter of 2018 will make more stabilize the bitcoin market, making it into a major asset class.
If the demand and growth rate of the bitcoin exists like this for a long – term the cryptocurrency will compete against existing assets such as gold and penetrate into a multi-trillion dollar industry in the offshore banking market. It will give the endorsement for the bitcoin by the traditional finance industry and investors within it through bitcoin futures.
He again added that:
“This is a big endorsement for the digital currency trading space. We could see more flows come into it and also, not only that, but futures help dampen and reduce the volatility of the price. So, this could help stabilize bitcoin as an asset class. And basically, increase the utility function of it as a source of economic — as a method of economic transactions.”
What Happens Next?
The entrance of large-scale institutional investors, retail traders, and hedge funds into the bitcoin market will twill make a great effect on all major exchanges in leading bitcoin markets. The demand for the bitcoin will increase at a rapid rate within the markets such as US, Japan, and South Korea. So. the institutions in the traditional finance sector will rush to invest in bitcoin and provide services around the cryptocurrency.
The CBOE is already trying hard for the rapid growth in the demand for bitcoin from the traditional finance industry.
In the short-term, the price of bitcoin will likely rise towards $20,000, as noted by Dwyer and prominent investors like Max Keiser and Mike Novogratz.
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