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Bitcoin Powers To Record $14,000 As Futures Contracts Near

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Bitcoin achieved yet another milestone further affirming its credentials as the most popular and volatile cryptocurrency in the world. Its price rose to record highs of $14,000 after beginning the year at less than $1000. The surge brings bitcoin market capitalization to more than $217 billion after a 1,600% surge for the year.

The recent rally follows an increase in institutional funding as most of them take up positions after missing out on the initial rally. Crypto hedge fund manager, Alex Sunnarborg, attributes the recent rally to the fear-of-missing-out, as longtime market observers and new investors jostle for positions.

Trading volume has also increased in the recent past as South Korean exchanges continue to trade well above the rest of the market.

Futures Market Talk Impact

The cryptocurrency remains well positioned for more gains, ahead of its debut in Future products next week. The futures market is poised to give deep-pocketed investors who had previously been barred from the market, an opportunity to play a role in the rally.

The Chicago Mercantile Exchange’s is set to launch Bitcoin futures on December 18 as Chicago Board options Exchange prepares to launch its own on, on December 10. NASDAQ is looking at introducing Bitcoin Futures sometime next year.

Bitcoin uptrend is not expected to cool anytime soon as bullish investors try to get in, before institutional investors find a way of driving the digital currency even higher. There is already talk that a Bitcoin exchange trade-fund could be in the offing as more investors enter into bitcoin futures contract.

“The idea is futures will add ETFs which will bring institutional money and further demand,” says Charles Hayter, CEO of CryptoCompare.

Subsiding Fears

Fears that once rocked the popular cryptocurrency have significantly dropped if sentiments by institutional investors who had been on the fence is anything to go by. Bitcoin’s hard forks that upgrade the cryptocurrency underlying software were a point of concern as it was feared they would divide the currencies support base.

Contrary to initial fears, forks have all but strengthened bitcoin’s support base. This is because each fork has always resulted in bitcoin users receiving an equal number of the new cryptocurrency in addition to their siting holdings. For instance, the hard fork that created bitcoin cash resulted in users receiving one bitcoin worth over $500.

Given that more hard forks are expected in future, some investors believe the cryptocurrency is destined to continue rising. However, there are those that are still on the fence given the many uncertainties at hand.

Wells Fargo, while in support of the underlying technology supporting bitcoin, remains skeptical about the crypto currency’s long-term future. The financial institution remains wary of the assets security as well as volatility and regulation that might come into being.

We will be updating our subscribers as soon as we know more. For the latest updates on Bitcoin, sign up below!

Image courtesy of Chad Horwedel via Flickr

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Bitcoin

Stepping off the rollercoaster: Why I’ve fallen out of love with Bitcoin

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Bitcoin
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The very word Bitcoin has almost become synonymous with that of cryptocurrency. It’s basically just a medium of conducting digital transactions – it’s a virtual currency and one of many. So how has it taken on a definition of its own and asserted itself as a leader in the digital financial ecosystem?

Bitcoin has been crowned king of altcoins, probably because it was one of the earliest and most successful of its kind. The trendsetter has ushered in a wave of cryptocurrencies built on decentralised P2P networks and has inspired a growing number of followers and spinoffs. But is Bitcoin struggling to keep up with the newcomers who have made considerable developments to the stability, security, and usability of the crypto world?

The supporting case for Bitcoin has been a clear one. Its pioneering infrastructure has situated it in a position of dominance in the altcoin realm. Bitcoin has a proven usage case as a store of value. Having existed over 8 years without failure, it has a large lead over most altcoins and has withstood the test of time as younger counterparts join the market. However, it seems to be on a downward slope, or at the very least, not progressing at the speed of the market.

In May this…

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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