Bitcoin surges past $6,500 on CME plan to introduce Futures
by FRANK ELEANYA
November 2, 2017 | 2:17 am| | | Start Conversation
Trade in bitcoin has received a massive kick as the world’s leading and most diverse derivatives marketplace, CME Group Inc. announced it will introduce trading in bitcoin futures before the year runs out.
News about the announcement was mainly responsible for a new all-time high in trade of bitcoin as price of the virtual currency surged to over $6,600 on Wednesday afternoon.
Prices on exchanges such as Bitfinex and GDAX recorded a daily peak at $6,592, while cryptocurrency trading platforms in other major regions like Japan and South Korea recorded trades above the $6,600 mark.
The price of bitcoin on the CoinDesk Bitcoin Index as at time of press was $6,613.73.
According to Bloomberg, CME Group’s CEO Terrence Duffy cited overwhelming client demand as a key reason for reversing its earlier position of not listing bitcoin “any time soon”.
Coin.dance an exchange that tracks bitcoin trading activities in Nigeria noted that volumes from last week of October was down N1.157 billion from N1.239 billion it recorded in the previous week.
Ahead of the SegWit2X hard fork expected in November, analysts who spoke to BusinessDay said it is likely to be very safe. Hence, demand may increase as a result.
Duffy told CNBC that he is “confident” CME’s self-certification process and application for the bitcoin futures will go through.
“We’ve been working with the regulator. They understand our model very, very well.”
Tim AKinbo, founder of Tanjola.com, a Nigerian-based exchange said bitcoin’s real value is yet to be determined.
“Bitcoin is still largely undervalued and could still appreciate higher. The global market capitalisation is a little over $100 billion. It is still small,” he said.
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