Last week brought positive news for Bitcoin owners and traders as the cryptocurrency made a huge jump from $7K amidst trouble in the Middle East. Once the dust settled it went back to mid $7K, but now the price has soared once again, jumping to its two-month high.
Over the past day, Bitcoin’s price jumped up nearly 4% (3.7% to be exact), rising above the $8K resistance it couldn’t break before. It currently floats just over $8,600 which is seen as a positive trend by many. The most likely ‘culprit’ for the price jump is the launch of CME’s Bitcoin futures contract which reportedly surpassed Bitcoin’s rival Bakkt in trading volume on day 1.
Whatever the reason, Bitcoin traders will surely love the fact that the cryptocurrency’s price is on the rise after months on the decline.
A 3.7% Jump
The $8.2K resistance has been holding strong for a week until late last night. CME’s Bitcoin options launch moved the needle in the right direction which resulted in a massive jump of nearly 4% for the world’s biggest cryptocurrency. Previous rallies couldn’t get past the $8,200 threshold, but that’s in the past now. The price jump gives Bitcoin a massive psychological advantage, with many experts believing that it’s currently on an upward trend.
Since overcoming the obstacle, the price rose steadily, currently shooting for $9K. Although many consider that very optimistic, the current price of $8.6K speaks volumes of the possibility. With the Bitcoin futures contract closing in on $3 billion, experts are adamant that the price will continue to soar. Of course, the price depends on many factors, but after years of being locked in a negative trend, it’s finally time to enjoy some good news.
Although the price jump is seen as a positive trend, JPMorgan advises traders to be careful. The financial company sees high anticipation for CME’s launch and believes that Bitcoin faces significant downside risk even after making the jump up. Bitcoin exchanges and futures have a mixed record when it comes to affecting Bitcoin’s price. Some have dragged it down, while CME’s launch as we’ve seen during the last 24 hours has sent it soaring sky-high.
The Controversial Nature of Bitcoin Futures
Bitcoin futures don’t exactly have a spotless track record in the crypto industry. They’ve been the subject of major controversy, especially when we’re talking about the Bakkt platform. An intercontinental Exchange-backed platform, it was ‘sold’ to the crypto community on the premise of physical Bitcoin futures when in fact it was cash-settled. According to some experts, these products can put a lot of pressure on Bitcoin and affect its price negatively.
Some have even gone so far to call Bakkt an evil agenda against Bitcoin. Popular experts online have sent a warning to Bitcoin owners and traders not to believe futures, considering all a black hole Bitcoin could never leave.
In the case of CME’s Bitcoin options, though, everything has turned out well for Bitcoin so far. Let’s see how the price holds up next week.