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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.

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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

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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