Why is Bitcoin’s price rising sharply over the last few days?

30 Jan

Why is Bitcoin’s price rising sharply over the last few days?

News

The consecutive increase of the digital currency started after CME group, the world’s biggest marketplace, announced it intended to launch bitcoin futures contracts.  

According to the data from Coindesk, the digital currency reached the all-time high of $7.355,35 on Friday afternoon, and then fell down to $6.895,41. Thus, Bitcoin increased 7% yesterday. At present time, a  Bitcoin is worth 7.062 USD.

Consequently, the cryptocurrency market value has grown to $189 Billion On Thursday (2.11), with Bitcoin representing more than 121 billion USD, according to Coinmarketcap website.

 

bitcoin-increase

bitcoin increase

Bitcoin future product of CME

On Tuesday, CME group, the world’s leading and most diverse derivatives operator, stated that they would introduce Bitcoin futures contracts, that will open a footgate for institutional investors enter the Bitcoin market.  Analysts believe this action of CME is the main reason of the bitcoin price gallop.

“Bitcoin which was an asset glass in Wild West has become a recognized one.” Charles Hayter, CEO of industry website CryptoCompare, told CNBC by email.

This action means bitcoin and Cryptocurrency will be managed, that allows more complicated financial products to be made, and eventually, large investors will get involved”, he added.

Bitcoin has rised 600% since the beginning of the year.

Worries are still available

Some managers warned about illegal activities relating to Cryptocurrency.

In September, China prohibited Innitial coin offering (ICOs).

Leaders of this country also stopped the operation of bitcoin’s exchanges. These two measures dramatically reduced bitcoin’s price.

On Wednesday (1.11), The US security commission said that ICO could be “illegal” if they don’t reveal how they can benefit the participants.  

CEOs of banks like CEO JP Morgan Jamie Dimon and CEO Blackrock Larry Fink also criticized the digital currency. Dimon raised his opinion last month when he said “investors buying Bitcoin are stupid” and “will pay for that in one day”.

Fink called the digital currency “indicator of money laundering” which can cause related frauds.

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