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Bitcoin Recovers to $16,500 Following Three Days of Volatile Trading

December 11, 2017 at 16:43 by Yahia Barakah

The Bitcoin price surged on Monday to recover most of the losses it had over the weekend, even as analysts continued to warn of a possible upcoming crash that might erase much of the recent gains. Today’s gain came as Bitcoin futures became available for the first time in the United States, as derivatives exchange Cboe launched its newest financial product.

The price of Bitcoin saw an increase of nearly 20% today, which erased a large portion of a decline that brought the price from $16,640.0 on Friday down to $12,825.0 yesterday. Today’s gain defied expectations of a price crash and put the market capitalization of Bitcoin back above $280 billion.

One exchange was widely viewed as the reason behind the gain. Cboe, one of the world’s largest future exchanges, has officially launched a Bitcoin futures product today, and Bitcoin enthusiasts believe it will help bring direct institutional investments into the digital currency.

More than 800 Bitcoin futures exchanged hands in less than 2 hours of trading, according to the Cboe exchange. The launch also attracted heavy traffic that brought Cboe’s website down. Futures contracts that expire in February traded at more than $19,000 for a single Bitcoin, which lifted the spot price of the cryptocurrency.

More exchanges are due to launch their own Bitcoin futures soon. CME Group Inc. announced that its version of the product will be made available from December 18, while the Nasdaq exchange said that it will begin offering the contracts in January.

The introduction of futures contracts to the Bitcoin market allows investors, including institutional ones, to take bets on the future price of the digital currency without actually buying it. This is an important step for Bitcoin to become more appealing to large investors who prefer such derivatives when investing their funds.

BTC/USD traded at 16,192.0 on the Bitstamp exchange as of 16:00 GMT on Monday after touching 16,526.0 at 14:20 GMT, the pair’s highest level since December 8. BTC/USD began trading today at 14,757.3.

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

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