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Bitcoin Posts New Record High as It Approaches $13,000

December 6, 2017 at 15:48 by Yahia Barakah

The Bitcoin price returned to rapid gains on Wednesday to set a new all-time high, after displaying some reluctance to further gains since the beginning of the week. The digital currency broke the $10,000 level for the first time in history last week, before posting multiple other records with relative ease this week.

Bitcoin surged to more than $12,700 today after trading in a range between around $10,600 and $11,800 since December 2. Today’s gains came as traders speculated that the introduction of Bitcoin futures later this month will help investors have an easy access to the digital currency. These futures are also expected to increase Bitcoin’s credibility as a legitimate asset between mainstream investors.

CME Group Inc. confirmed that the launch date for Bitcoin futures on its trading platform will be December 18. With the official launch, the cryptocurrency’s price is expected to surge higher as institutional investors and hedge funds use their vast financial resources to trade the digital asset. Cboe Global Markets Inc. will also offer Bitcoin futures from December 10, while Nasdaq Inc. plans to begin offering these contracts in 2018.

The higher price for Bitcoin also followed endorsement by a number of major names in the financial fields, including billionaire investor Mike Novogratz, Bitfury Vice Chairman George Kikvadze, and Coinbase Executive Officer Brian Armstrong. These endorsements will bring in at least $10 billion of institutional money into the Bitcoin market in the coming weeks.

The rising institutional interest in Bitcoin has been the biggest driver of gains in recent weeks. Some experts expect that the virtual currency may surpass the $40,000 mark in 2018 with relative ease.

However, Bitcoin’s recent rapid gains promoted many economists to speak out their skepticism. Many warn of a growing valuation bubble that they believe is evident in price movements of more than $1,000 in less than 24 hours. Others predict that a major price correction will certainly take place in the coming days as a reaction to these rapid gains.

BTC/USD traded at 12,715.0 on the Bitstamp exchange as of 15:35 GMT on Wednesday after rising to 12,800 at 11:00 GMT, the pair’s highest level in history. BTC/USD began trading today at 11,700.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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