Why is bitcoin’s price so high? Why is bitcoin’s price so high? High bitcoin price’s price has risen stratospherically, a fact that leaves many minor players in the market with massive gains and many bigger players millionaires.
Bitcoin’s price has risen stratospherically, a fact that leaves many minor players in the market with massive gains and many bigger players millionaires. But is this a bubble? And are the bitcoin whales in for a sad Christmas? First we must understand what drives bitcoin price and, in particular, this boom. The common understanding for current growth leads us back to institutional investors preparing for the forthcoming BTC futures exchanges. The primary theory about the astonishing rally being put forward by investors on social media is that bitcoin will soon benefit from big institutional money injections via the introduction of the first BTC futures products. CBOE Global Markets and CME Group are launching new futures contracts on December 10 and December 17, allowing investors to go long or short on bitcoin.
This ability makes bitcoin far more palatable to big investors who are currently flooding the market to make profits if and when the bitcoin price falls. You are about to activate our Facebook Messenger news bot. Once subscribed, the bot will send you a digest of trending stories once a day. You can also customize the types of stories it sends you. Click on the button below to subscribe and wait for a new Facebook message from the TC Messenger news bot. December 10 and December 17, allowing investors to go long or short on bitcoin.
This move also legitimizes bitcoin in Wall Street’s eyes, an important point considering cryptocurrencies are still suspect. This group of enthusiasts bought and held bitcoin and will not sell it at any current price. More and more bitcoin fans are entering into this group and they are driving up demand increases. We see a common thread between these points: hype and news. All cryptocurrency movements are based on domain specific media and conversations between traders.
That is all coming and at that point the market will harden itself against panics and booms. Until then we enjoy rises and dips and volatility that puts most bitcoin dilettantes off their lunch. Ultimately new and old users are testing the limits of a system that, for a decade, has been untested. The futures market will be a big driver in growth and bust over the next few months as institutional investors begin using the currency. 11,500 are likely to be short-lived. Yes, to those who are betting big on BTC.