BITCOIN, barely a week after posting the steepest intraday dip of 20% is now trading at a record high of $USD14,000. This was less than 24 hours after topping $USD12,000. The famous crypto currency has beat all odds and analysts thinking to understand what is driving this rally. The Bitcoin market is valued at $USD230 billion vying for 20 largest stocks in the S&P500.
Bitcoin started the the year just under $USD1,000 and its gains have accelerated as investor interest grows. Chicago-based Cboe Global Markets is planning to launch bitcoin futures on Sunday, while the world’s largest futures exchange, CME, is set to launch its futures product the following week. The addition of bitcoin futures by two respected exchanges marks another step towards establishing the digital currency as a legitimate asset class.
“While we launched [in the U.S.] just a week ago, bitFlyer has already seen strong interest from institutions looking to gain exposure to bitcoin. We’re glad to have expanded to the US at this time with so much interest due to the impending Bitcoin futures launches,” bitFlyer COO Bartek Ringwelski, said in an email. The Tokyo-based digital currency exchange is the largest in the world by trading volume and announced last week it received a “BitLicense” to operate in New York.
However, many believe this market could end in tears and remain critical of bitcoin. JPMorgan Chase Jamie Dimon has called bitcoin a “fraud.” Digital currency investor and former Fortress hedge fund manager Michael Novogratz also said last week that cryptocurrencies like bitcoin are “going to be the biggest bubble of our lifetimes.” Novogratz also predicted last week that bitcoin could reach $40,000 by the end of next year.
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