Bitcoin could soon reach $13,000 dollars as it has just passed the $12,000 level on December the 5th. Some hours ago, the virtual currency has touched the $12,800 zone in Bitfinex exchange and could keep growing until $13K.
Bitcoin Could Hit $13,000 Soon
The famous virtual currency has experienced an extraordinary year. Amid regulations from different institutions and negative comments it has increased its price more than a 1,000 percent. Because of that, its market capitalization has been increasing constantly during the year.
Between January and April, Bitcoin market capitalization remained stable between $14 and $19 billion dollars. In May it has started to grow. In June, it was at $48 billion dollars, breaking all the records at that moment. During August, Bitcoin market capitalization reached $78 billion dollars. After China’s decision to ban ICOs and cryptocurrency exchanges, the market capitalization didn’t stop growing. Now it accounts for 56 percent of the total cryptocurrency market capitalization with $216 billion dollars.
Bitcoin price is now in an upward trend that started in November. Since then, the price has grown from $6,000 dollars up to $12,800 dollars some hours ago. It has more than doubled its price in less than one month. But most of the people are wondering whether this trend line is going to end soon or not. If the trend keeps, Bitcoin would probably cross the $13,000 dollars’ price level in the coming hours.
Why is Bitcoin Having Such an Impulse?
Over recent months, Bitcoin was in the news because we could see soon institutional investments arrive at the cryptocurrency market. The Chicago Board Options Exchange (CBOE) has announced that it will launch Bitcoin futures on December the 10th.
“This brings many benefits to traders, including transparency, efficient price discovery, deep liquidity and centralized clearing. XBT futures provides a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions,” the statement released by the CBOE reads.
“We are pleased to bring Bitcoin futures to market after working closely with the CFTC and market participants to design a regulated offering that will provide investors with transparency, price discovery and risk transfer capabilities,” said Terry Duffy, CME Group Chairman.
In addition to these two communications, Nasdaq Inc, has also decided to offer Bitcoin futures to its customers.
The markets may have reacted to this information coming from the most important options exchanges in the world. Big and institutional investors are now able to operate in a regulated framework. The cryptocurrency sphere could be receiving a price bump in the next days due to these important announcements.
The Way up to $13,000
We still do not know whether investors will back the currency or not. There are two possibilities. The first one is the positive one. When the CBOE and the CME will start operating with bitcoin, the market will receive a big influx of money. That’s why the price will increase dramatically and the Bitcoin will be legitimized.
The second and negative possibility is that the institutional investors could be betting against the currency. If they go short, the price will drop and we may see a drastic price correction. If the price reverses, then when the CME will start to operate, we could see the price recovering.
Now, the market is reaching almost $13,000. Some cautious investors are waiting as much as possible to sell their Bitcoins at the highest possible price before the CBOE will start trading. By comparison, other long term or riskier investors are turning their investments into Bitcoin. They expect that the currency would be legitimized and, consequently, its price would rise.
As markets do not always behave in a rational way, we do not exactly know what will happen with Bitcoin. We have these two options mentioned before that may occur or not. Perhaps, the price would remain stable and the market will gain liquidity from these new investors.
What do you think about it? Will Bitcoin receive a big bump or we will see a price correction?
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