Connect with us

Bitcoin

The Next Leg in Bitcoin’s Bull Market Is Coming as CME Announces Plans for Futures

Published

on

Have you had enough of bitcoin’s relentless surge? Well, the digital asset is expected to get a whole lot more expensive now that the world’s biggest exchange has announced plans for bitcoin futures.

Peak Bitcoin? Think Again

In an apparent change of heart, CME Group Inc. has announced plans to introduce bitcoin futures by the end of 2017. The announcement came a month after the world’s biggest futures exchange dismissed any notion of entering the cryptocurrency space.

The move will allow institutional investors to get in on the world’s hottest asset class using a more conventional market tool. Futures are essentially financial contracts obligating the buyer to buy an asset or the seller to sell the asset. The futures market is largely tied to commodities, equities and Treasury notes.

CME Group’s foray into cryptocurrency is influenced by a recent decision by CBOE Global Markets Inc. to enter the market. CBOE has already announced plans to begin offering bitcoin futures contracts by early 2018. It is currently waiting approval from the Commodity Futures Trading Commission before moving forward.

According to Bloomberg, the CME futures contract will settle in cash and reflect daily price action from the CME CF Bitcoin Reference Rate. The Reference Rate is drawn from digital exchanges Bitstamp, GDAX, itBit and Kraken. Crypto traders will notice that Gemini is missing from the list. That’s because it has already entered into a deal with CBOE.

CME’s chief executive Terrence Duffy issued the following statement on Tuesday:

“As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.”

“Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract,” Terry added, according to CNBC.

Bitcoin Climbs to New Record

Bitcoin climbed to new record highs on Tuesday, as investors rallied behind growing institutional demand for digital assets. BTC/USD peaked above $6,400 for a gain of more than 4%. At press time, it was trading around $6,379. The latest rally gave bitcoin a market cap of more than $106 billion. As a result, the total market capitalization for all digital assets above $182 billion for the first time.

As the world’s largest cryptocurrency, bitcoin has skyrocketed more than sixfold this year. Institutional investors have paid close attention to the rally, but have hesitated to enter an unproven market with little regulatory oversight. The introduction of a bitcoin derivative is a major step toward the development of bitcoin as a more established asset class. As such, investors can expect a favorable outlook as institutional cash enters the market.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 457 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Bitcoin

China and the Next Cryptocurrency Bull Market 

Published

on

Cryptocurrency experts from mainland China believe we are on the cusp of another bull market for digital currency. And it could be nationals from their own country who help drive the “fifth wave” of the market uptrend.

Chinese Investors Will Drive Next Crypto Bull Market, Experts Predict

In a recent interview with Tencent Technology, Sun Zeyu of Genesis Capital said cryptocurrencies are poised to continue higher in the fourth quarter as investors shake off the sentiment-laden collapses of the first six months of 2018.

Gensis Capital is a Hong Kong-based investment firm specializing in growth-stage internet companies.

Gao Kangdi of Metropolis VC told Chinese media that “the scale of the fifth wave of the crypto bull market may be far beyond our imagination.”

What these industry voices have in common is the belief that China will play a major role in the next bull market in spite of a nation-wide ban on the trading and mining of digital assets. They cite massive flows of capital already into the blockchain and crypto ecosystem already underway in places like Singapore.

The tiny city-state is now home to thousands of foundations established by Chinese nationals. This has been corroborated by Chen Xianhui, a local agent helping Chinese nationals set up foundations in Singapore. According to Chen, most of these thousand-plus foundations are token investments funds.

Setting up a foundation in Singapore costs only 10,000 RMB ($1,561 U.S.) and takes just 15 days.

Singapore has emerged as one of the more favorable destinations for initial coin offerings (ICOs) and other market players. The Monetary Authority of Singapore (MAS) last month proposed changes to its current regulatory regime that will make it easier for blockchain-related exchanges to set up shop n the country.

Instability in Traditional Markets

China’s crypto analysts believe global financial instability and the growing threat of risk aversion could play into the hands of digital currencies. Bitcoin is often posited as a non-correlated asset, which means it moves independently of the broader financial market. Although some observers noted a small correlation between bitcoin and stocks earlier this year, this was largely due to the influx of new crypto traders to the market.

While it’s far too premature to call for a bear market in global equities, a sharp rise in bond yields and growing instability in emerging-market currencies have been the source of significant tumult in recent months. The next critical test for equities will be the gradual winding down of crisis-era policies.

The European Central Bank (ECB) announced Thursday it would put an end to its record bond-buying program this year. Meanwhile, the U.S. Federal Reserve is planning to raise interest rates two more times for 2018.

Bitcoin’s status as a safe haven has been contested by those who argue that virtual currencies have no intrinsic value. However, analysts at Goldman Sachs believe the opposite is true as assets like bitcoin continue to grow and mature.

In particular, Goldman Sachs analyst Zach Pandl has argued that bitcoin will follow a similar trajectory as gold in the long run as a low-return, hedge-like asset.

“We should stress that, as money, cryptocurrencies should have low expected returns in the long run, despite their high returns recently,” he wrote back in January. “Digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals.”

Charles Thorngren, CEO of Noble Alternative Investments, believes bitcoin is also attracting a new type of investor: namely, equity investors who are looking for new options.

In an interview with Forbes, Thorngren said the following:

“The base of bitcoin has changed, in fact it has evolved, to a wider base of investors. People who have only invested in equities are now looking for options as the rumblings in the stock and bond market increase.

This new investor helps to establish a stronger Bitcoin market and adds legitimacy to the Cryptocurrencies as a whole.”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 457 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Coins Pop Higher as Consolidation Continues

Published

on

Trading activity increased in the major coins today, amid a mixed news flow, and for now, bulls scored a small victory following last week’s bearish price action. Bitcoin, Ethereum and most of the largest digital currencies gained several percents, despite the weekend’s deterioration, and although the technical setup didn’t change significantly, an immediate breakdown has been averted.

The discouraging BIS report that has been making waves today wasn’t enough to push the coins below support, but for now, the short-term strength left the trading range intact with the primary resistance levels still keeping a lid on prices. Given the uncertain long-term picture, the coming weeks will be crucial for the largest coins and the whole segment alike, with Bitcoin being in the center of attention after its long period of relative weakness.

BTC/USD, 4-Hour Chart Analysis

Bitcoin held up above the April low, despite the bearish short-term picture, and the coin the highest price level in a week, breaching the $6750 level in the process. While the most valuable coin fared relatively well today, it clearly remains a laggard from a broader perspective, and it is still trading in a declining short-term trend, with several strong resistance levels just ahead.

The $5850 is the key from a long-term perspective, with further support levels at $6500 and $6275 and resistance ahead at $7000 and $7350.

Bearish Rotation Among Altcoins

ETH/USD, 4-Hour Chart Analysis

On a negative note, the leaders of the latest rally were among the weaker coins today, and that is a sign of bearish rotation in a segment, and until major resistance levels are broken traders shouldn’t enter new positions here. Ethereum managed to rally above $500 yet again, but it remained below week’s bounce high, leaving the trading range intact, while the declining short-term trend is also still dominant.  Strong resistance is still ahead between $555 and $575, while support below $500 is found at $450, $400, and $380.

EOS/USD, 4-Hour Chart Analysis

EOS, which is one of the strongest majors technically speaking also edged higher today, but it remains stuck in the declining short-term pattern, and below key support/resistance zone near $12. The coin is well below last week’s high and until a confirmed short-term trend change, traders shouldn’t enter positions here.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 277 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Altcoins

New York Approval of Crypto Trading App Ignites Price Rally for Bitcoin, Altcoins

Published

on

The cryptocurrency market on Monday added $13 billion in the span of one hour after New York’s Department of Financial Services granted Square a digital currency license.

Square Cash App Approved for BitLicense

San Francisco-based startup Square, Inc. announced Monday it has been granted approval by New York regulators to launch its cryptocurrency trading platform in the state. The new crypto service will be offered through Square’s Cash app, which has seven million monthly active users, based on the company’s first-quarter earnings call.

The announcement was confirmed by Square in conjunction with an official press release issued by New York’s Department of Financial Services (DFS).

“DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market.,” Superintendent Maria Vullo said in a statement. “DFS continues to work in support of a vibrant and competitive virtual currency market that connects and empowers New Yorkers in a global marketplace while ensuring strong state-regulatory oversight is in place.”

Bitcoin buying launched for Cash users last fall; by January, most users had access to the crypto trading platform. Square announced in March it would seek a BitLicense to bring bitcoin trading to the nation’s second-most populous state.

Cash App has reportedly generated $34 million in profit through its bitcoin trading service.

Bitcoin, Cryptos Pop

Cryptocurrencies added roughly $13 billion in value between 12:22 UTC and 13:27 UTC, bringing the total market cap to $289.5 billion. Total trading volumes spiked by more than $1.5 billion over the same period.

At press time, the total value of all cryptos in circulation was $287.1 billion, according to CoinMarketCap. That represents a gain of about $23 billion from last week’s bear market low.

Bitcoin reached a high of $6,781.14 following the Square Cash announcement. It was last seen trading around $6,716, according to BarCart data.

The largest cryptocurrency by capitalization showed signs of breaking down earlier in the day as prices approached $6,300 on the major exchanges. BTC/USD was little changed over the weekend as the bulls failed to extend last week’s modest relief rally.

Despite the latest gain, bitcoin remains about 10% lower for June and is down more than 50% year-to-date.

As an asset class, altcoins rose more than $8 billion Monday afternoon. At $172.2 billion, digital currencies outside of bitcoin represent 60% of the total market.

All coins within the top-ten reported gains. Percentage-wise, Tron was the best performer, rallying 5.4% to $0.045. Ethereum jumped 3.4% to $517.46. Bitcoin cash added nearly 4% to trade at $884.28.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
4 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 5 (4 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 457 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

11 of 15 Seats Available

Learn more here.

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending