After waiting several days, the Chicago Board Mercantile Exchange (CBOE) has launched bitcoin futures. Amid uncertainty, Bitcoin price is up 13 percent reaching $17,000 dollars in the Gemini exchange platform.
CBOE Launches Bitcoin Futures
The CBOE exchange started to offer Bitcoin Futures at 5 pm when Bitcoin was traded at $15,000. Once the market opened, it spiked in just five minutes up to $16,100. That means that Bitcoin experienced a 7 percent increase in a blink of an eye.
The CBOE official site was down for almost forty minutes due to the high number of users trying to load the page. The website offers delayed information about the bitcoin contracts settled. The markets show that it was really active with important sells and buys, but always keeping the upward trend. If the market keeps growing at these rates, we could expect a new all time high in the coming hours.
Once Bitcoin reached $16,100 the price went abruptly down, reaching $15,280 dollars at 5:10 pm. It seemed that the markets were going to witness an important volatility, but the price stabilized between $15,200 and $15,800. The 16K level seemed to be a difficult barrier to break. The market tried several times at 7:15 pm and later at 7:30. Since then, the price is moving around $16,200 dollars. The 16K zone was tested several times since then and it worked supporting Bitcoin’s value.
What Were We Expecting?
At CoinStaker we were analysing step by step how we were approaching to the launching of Bitcoin Futures. Just some days ago, we explained that there were three possible outcomes once the markets opened.
The first theory was that Bitcoin was going to receive a big price bump due to new investors arriving at the cryptocurrency market. The second theory was Bitcoin price going drastically down. The third theory was that the market was going to remain stable and gain liquidity from the new money coming to the market.
At the moment, we have seen that Bitcoin has received an important increase around 13 percent in four hours. At the moment of writing this article, the market is not volatile and its volume represents an increase compared to the rest of the day.
At the moment, the CBOE has been working just some few hours. We cannot say that Bitcoin futures were neither good nor bad for Bitcoin. But we can certainly affirm that the new money arriving to the Cryptocurrency environment means more liquidity and legitimacy for Bitcoin. Furthermore, its price has strongly increased and it could reach new highs.
What About the Other Cryptocurrencies?
In general, the virtual currency market is operating positively. The majority of the cryptocurrencies had important gains in the last 24 hours with just a few exceptions.
We need to see what will happen in the next days and what will the Chicago Mercantile Exchange (CME) bring to the market.
Do you think that the CBOE and CME operating with Bitcoin futures are good for the cryptocurrency world? Will the price go up or down?