Published: Fri, December 15, 2017
Markets | By Erika Turner

Bitcoin slips to around $16300, futures volumes drop

Bitcoin slips to around $16300, futures volumes drop

The CBOE announced it would launch futures trading in bitcoin under the symbol "XBT" on Sunday night, December 10, 2017, at 6 p.m. EST.

The newly launched one-month bitcoin futures on the Cboe Futures Exchange were slightly tepid, with prices generally steady and volumes about a third of those seen on Monday.

While market participants are still heavily divided over the digital currency's utility, value and safety, they expect the futures contract to offer a legitimate means for institutions to bet on bitcoin. Peterffy, a billionaire, wrote in a letter that has also been published on the Wall Street Journal that bitcoin and cryptocurrency-related financial products should be kept away from the 'real economy'.

Virtual currency bitcoin hit another all-time peak on Tuesday, two days after the launch of the first ever bitcoin futures on a US exchange and ahead of the start of another futures contract next week, as investors grew optimistic that the $20,000-mark is within reach. In futures, both the buyer and the seller have an obligation to complete the trade at the end of the contract by settling in cash.

"Many factors play a role in determining cryptocurrency prices, and staying on top of not only the coins themselves but also the markets and industries intertwined with them is very important", DiPasquale said.

Bitcoin slips to around $16300, futures volumes drop
Bitcoin slips to around $16300, futures volumes drop

"Currently bitcoin is being used as a speculative asset and store of value".

There had been speculation that the futures launch would trigger more gyrations in the market. In theory, the successful launch of the Bitcoin contract should add confidence in the market and in the broad asset class. In a futures contract, when you buy something, you buy it with a promise to pay at a future date. "If it works out and it gets more established and it trades like a store value and it doesn't move up and down 20% and there's liquidity in it, we'll get to it". These futures on this exchange are traded in dollars.

The Winklevoss brothers said in 2013 that they owned nearly $11 million worth of bitcoins. Heightened excitement ahead of the launch of the Cboe futures gave an extra kick to the cryptocurrency's scorching run this year.

"Anyone, especially a professional trading outfit, would be insane to actually short sell this bull market", said Nick Spanos, founder of Bitcoin Center NYC.

You can't do a bitcoin futures trade in India. Hong Kong's regulator issued a warning that only licensed firms can offer such products within Hong Kong. When traders look to exploit the difference between where they feel where prices will be over time and where the futures contract is priced - arbitrage, or trading against the forward bias in FX markets - volatility tends to be dampened in the spot market. In Korea, the Financial Services Commission financial regulator issued a directive that bans securities firms from taking part in Bitcoin futures transactions. "For futures to come about, a higher level of regulation is required".

Weather Forecast- Tuesday, December 12th
It's a cool start outside with temperatures down in the mid 40's and winds starting to pick up after a cold front passed through. A weak cold front will move through part of the area Sunday but, will not affect temperatures very much.

Like this: