Bitcoin is now live on Wall St.
Futures on the world’s most popular cryptocurrency surged as much as 26 percent in their debut session on Cboe Global Markets Inc.’s exchange, triggering two temporary trading halts designed to calm the market. Initial volume exceeded dealers’ expectations, while traffic on Cboe’s website was so heavy that it caused delays and temporary outages. The website’s problems had no impact on trading systems, Cboe said. Bitcoin’s spot price rose, reports Foutune.
“It is rare that you see something more volatile than bitcoin, but we found it: bitcoin futures,” said Zennon Kapron, managing director of Shanghai-based consulting firm Kapronasia.
The launch of futures on a regulated exchange is a watershed for bitcoin, whose surge this year has captivated everyone from mom-and-pop speculators to Wall Street trading firms. The Cboe contracts, soon to be followed by similar offerings from CME Group Inc. and Nasdaq Inc., should make it easier for mainstream investors to bet on the cryptocurrency’s rise or fall.
As per CoinDesk’s Bitcoin Price Index, the world’s largest cryptocurrency by market capitalization rose to a high of $16,773.04 at 08:00 UTC today, and was last seen trading at $16,500 levels. Going by CoinMarketCap data, bitcoin (BTC) has appreciated 16 percent in the last 24 hours.
It hasn’t all been smooth sailing this week, however. Following all-time highs on Dec. 8, prices fell to $13,000 yesterday before recovering to $15,700 at the time of bitcoin futures launch on the CBOE.
Approximately four hours after the debut, the BTC contract on the CBOE (which expires in January) spiked 20 percent and triggered two trading halts. Further, a surge of traffic to the CBOE website caused delays and outages, but failed to deter the cryptocurrency from regaining altitude.
With doors now open for mainstream investors, BTC is showing no signs of slowing down. The price chart analysis indicates the path of least resistance is on the higher side. Where does it go from here?