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

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.