Bitcoin On March To $20,000
Tuesday, the virtual currency Bitcoin hit another all-time high, 2 days after the launch of the 1st ever Bitcoin futures on a US exchange and ahead of the start of another futures contract next week, as investors grew optimistic that the $20,000-mark is within reach.
Currently Bitcoin is being used as a speculative asset and store of value. But as scaling solutions…emerge, Bitcoin’s utility dramatically increases along with its price.
Bitcoin, the world’s biggest and best-known cryptocurrency, was quoted at $17,310 on the Luxembourg-based Bitstamp exchange, up 5.1% on the day.
Earlier Tuesday Bitcoin hit a record high of $17,428.42, registering a roughly 20X increase in its price for the year as it drew in millions of new investors.
A Reuters technical analysis that measures the ups and downs in trading prices, known as waves, showed Bullish momentum for Bitcoin.
The technical analysis suggests an extension of a wave, which could mean that bitcoin would easily surge above the psychologically important level of $20,000, according to the Reuters analysis.
But as Bitcoin set a new record, digital currency exchange operators Coinbase and Bitfinex reported problems with service through their websites Tuesday, frustrating traders seeking to cash in on the latest surge in the value of Bitcoin and other cryptocurrencies.
The newly launched 1-month Bitcoin futures on the Cboe Futures Exchange (NASDAQ:CBOE) were tepid, with prices generally steady and volumes about a 3rd of those seen Monday.
Bitcoin futures maturing in January XBTF8 were at $18,450, with just 1,416 contracts traded as of late afternoon in New York, compared with 3,956 contracts on the first day.
About $26.4-M was notionally traded Tuesday, compared with around $73-M on Monday.
Some investors even expect the futures will offer markets an easier means to take Short positions on the cryptocurrency.