The price of the cryptocurrency Bitcoin has gone up 20% overnight due to the launch of the Chicago Board Options Exchange (CBOE) Bitcoin futures trading platform. As per CryptoCompare, a cryptocurrency market data provider, the Bitcoin price went up from $13,400 to $16,315 in just 24 hours time.
Market analysts believe that the CBOE listing of Bitcoin futures is the major reason for the surge in Bitcoin price. According to many investors, the price of Bitcoin is to increase even more in the coming months as billions of dollars are flowing into Bitcoin market.
Greg Dwyer, the business development head of BitMEX, says that Bitcoin price could go up to $50,000 by 2018 end and it is to reach a trillion dollars valuation midterm.
Dwyer says, “Now, looking at the current market cap of Bitcoin as going to $300 billion, with more institutional money coming in we could see market caps go up to $500 billion, which could — or even $1 trillion — which could increase the price of Bitcoin from now $15,000 up to $20,000, $25,000, or even $50,000.”
The listing of Bitcoin by popular exchanges like CME, CBOE and Nasdaq by the first quarter of 2018 is set to validate and stabilize the Bitcoin market. If Bitcoin can sustain its market growth rate to this extent then it would grow to compete with gold and other valuable assets and would be able to get into multi-trillion dollar industry in the banking market offshore.
Nikolaos Panigirtzoglou, JPMorgan global markets strategist says, “This is a big endorsement for the digital currency trading space. We could see more flows come into it and also, not only that, but futures help dampen and reduce the volatility of the price. So, this could help stabilize bitcoin as an asset class. And basically increase the utility function of it as a source of economic — as a method of economic transactions.”