Despite expectations to the «collapse of bubble», which are enhanced due to the fact that bitcoin swish is all new frontiers, each new level he is given easier and almost without serious corrections. On the morning of 6 December was passed the next price level at $ 12,000, on which the price has not stopped and went on, approaching $12 500, and the exchange GDAX even rose to $12 540.
Although many prominent figures in the financial world are increasingly talking about the fact that bitcoin is a bubble and pullback in prices is inevitable, the battle for the right to release the first futures bitcoin is pushing the price higher and higher. The today update a historic high is probably a statement of the General Director of Intercontinental exchange and Chairman of the Board of the new York stock exchange (NYSE), Jeff Sprecher:
«Maybe we did something stupid without being here [in the launch of futures on bitcoin first. I don’t know what to do with cryptocurrencies».
Recall that December 10 is the first bitcoin derivatives will be launched on the CBOE and on the 18th of December at the CME.
However, it is worth mentioning that not everyone shares the euphoria of the advent of futures on bitcoin. There is a widespread and fairly informed opinion that cryptocurrency derivatives can easily how to boost the price even higher and derail it. With the help of futures trading you can play both on increase and decrease of prices.
Bloomberg, citing a number of investors, hedge funds, who mostly eschewed bitcoin, waiting for the start of trading futures to start betting against cryptocurrency.
«Futures reduce barriers to more shorts than long positions, therefore, possible bearish effect,» commented Craig Pirrong (Craig Pirrong), Professor of the University of Houston. He further explains that it can «to bring the price of bitcoin to reality».
Many believe the market of bitcoin «one of the greatest opportunities to play on the slide ever», including Lou Kerner, partner at VC Flight and captainvalor. He stressed that along with the fans, there are those who believe that the bitcoin «bubble and Ponzi scheme,» and they can start a game against bitcoin.
Co-founder of hedge Fund BlockTower Capital and former portfolio Manager of the investment Department at the University of Chicago Ari Gender (Ari Paul), opposed the views of the punch:
«While some traders are bearish on bitcoin, where large amounts will go to the opening of long positions».
Michael Novogratz, founder of the hedge Fund to invest in cryptocurrencies with a starting capital of $500 million, I’m sure that the ability to short the currency is «an important part of the ecosystem», but warns that it can be risky.
According to General Director of Genesis Global Trading Michael Moreau (Michael Moro), to date ways to open short positions on bitcoin was limited. Its platform has issued debt to investors about $20 million on a bearish position. GDAX, BitMEX and Bitfinex allow margin trading investors with only short-term and expensive loans. And one of the advantage of exchanges is the provision of cheap liquidity for large transactions.
«With the existing exchanges no one can enter and make the shorts a $1 million Futures CME open up new frontiers», he commented.
How it will react cryptocurrency market futures bitcoin we will know very soon. It is likely that the market will be very volatile these days and volatility is likely to reach unprecedented, until today the extent.