Bitcoin Continues Upward Climb Despite New Futures Deal
AFP 2017/ Justin TALLISBusiness17:50 18.12.2017Get short URL433
Bitcoin has continued its climb after a new futures contract facilitating short bets failed to hold back its upward trek, Bloomberg reported.
Bitcoin gained a hefty nine percent from its Friday New York close falling just a bit shy of hitting the record high of $19,511 on Sunday.
Even though it was pushed two percentage points back by the arrival of CME Group Inc. futures for January, it quickly recovered edging up to $19,770.
Even though the new CME derivative makes it easier for institutional traders to sell the cryptocurrency short, betting on a dive remains a problem with the futures exchange in Chicago requiring an initial margin of 47 percent for opening trades on a five-bitcoin future.
Even though this promises lucrative shorting opportunities, traders are wary to jump in.
“I’m not totally convinced that this offers a clear enough link to enable people to play the short side and still reap the financial benefit at settlement,” Jeremy Goldwyn, a managing director at Hong Kong-based commodities and financial futures brokerage Bands Financial Ltd., told Bloomberg.
Bitcoin has enjoyed a meteoric though volatile rally since January when a unit of the cryptocurrency was valued at just $998.
READ MORE:New Rules Are ‘Expected Response’ to Bitcoin Becoming More Mainstream — Investor