Bitcoin zoomed to fresh peaks on Thursday, with traders bidding the cryptocurrency up after a decision earlier this week by a major exchange operator to launch bitcoin futures, which gave the notion that Wall Street was taking it seriously.
According to a Financial Times report citing Reuters data, bitcoin was up 5.4 percent to $7,105 in mid-morning trading in New York as against the about $1,000 it traded 10 months ago.
CME Group, the Chicago-based exchange operator known for derivatives that let investors hedge against and speculate on currencies moves, unveiled plans this week to launch bitcoin futures. It joined CBOE Global Markets, which is planning to launch bitcoin options, which are another form of derivative.
The increasing attention has come even as some of the financial industry’s biggest names, including Jamie Dimon, the JPMorgan Chase chief executive, and BlackRock head Larry Fink have warned investors that they may find themselves in the midst of a bubble.
It is worth noting, too, that bitcoin has at times faced intense volatility — far greater levels than with established currencies that trade in one of the most liquid markets in the world. In September, for instance, it fell sharply after bearish comments from Dimon and concerns of a regulatory crackdown from China.
Frontpage December 12, 2018