In a spectacular comeback, Bitcoin futures (BTC) climbed back above the 7,000 mark during today’s trading session. Reaching a high of 7440, the benchmark cryptocurrency futures derivative is now up over 100% year to date.
“Bitcoin has been building up momentum,” according to Mati Greenspan, senior market analyst at social trading firm eToro. Greenspan also added that the digital currency could continue its rise since it is only “in the early part of its cycle.”
Bitcoin futures first traded at a price of over 20,000, but soon experienced a colossal selloff reaching an all-time-low of 3090. BTC futures are known for volatile moves with the potential for large percentage swings in either direction.
Key Factors for Bitcoin Futures
- Today’s rally arose out of anticipation of announcements regarding Bitcoin at Blockchain Week NYC and CoinDesk’s Consensus 2019, two digital currency events in New York this week.
- Current volume for today is already higher than any trading day last week.
- Analysts from investment bank Canaccord Genuity expect bitcoin to potentially return to its late 2017 highs.
BTC Futures on CME
Launched by the CME Group in December of 2017, Bitcoin futures received a mixed response from the futures community. However, viewing a year to date daily price and volume chart as seen below, volume has steadily increased and the price movement could be shifting from a bearish to bullish cycle.
That being said, bullish breakouts such as these are no guarantee of a continued upward move. Traders should always be prepared for unpredictable markets and should manage risk accordingly.
Regardless, this latest price and volume surge is noteworthy and helps firmly establish Bitcoin futures as a regulated vehicle to gain exposure to the cryptocurrency market.
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