Nov. 27 2017 (The Ferowich Report) — The market for bitcoin smashed a fresh all time high over $9,500 as speculation mounts that the world’s most popular digital currency will sell for $10,000/BTC sooner rather than later.
Highlight:“This is the biggest bull market in my 43 years as a trader,” said Peter Brandt, author and professional commodities trader.
The $10,000 price level is widely viewed as a major psychological point for traders. The exponential rise of the digital asset has rode momentum from the Chicago Mercantile Exchange’s pending offer of bitcoin futures during early December, which will pave way for big-fish institutional investors to hedge risk with BTC futures.
More generally, futures contracts create more utility for bitcoin and will subsume another new niche group into the crypto space that includes traders who love volatility, counter-culture contrarians, libertarians with strong opinions about the Federal Reserve and technologists bullish on the blockchain underlying bitcoin.
One development that has not reached the cryptocurrency news mainstream in the same way the CME announcement has, but may be putting upward pressure on bitcoin’s price, is the launch of long-term bitcoin call options on LedgerX. The requirements for trading on LedgerX’s platform are pretty high, which might be why the story never took off among retail bitcoin traders: individuals must have at least $10 million invested on a “discretionary basis” or have $5 million invested in hedging risk just to qualify for the application to trade on LedgerX.
Coinbase’s exponential user growth is also likely contributing to upward bitcoin price pressure, especially considering how simple it is to program an auto-buy function on the platform.