October 15, 2019, 22:01

Bitcoin Continues Upward Climb Despite New Futures Deal

Bitcoin Continues Upward Climb Despite New Futures Deal

Bitcoin has continued its climb after a new futures contract facilitating short bets failed to hold back its upward trek, Bloomberg reported.

Bitcoin gained a hefty nine percent from its Friday New York close falling just a bit shy of hitting the record high of $19,511 on Sunday.

Even though it was pushed two percentage points back by the arrival of CME Group Inc. futures for January, it quickly recovered edging up to $19,770.

Even though the new CME derivative makes it easier for institutional traders to sell the cryptocurrency short, betting on a dive remains a problem with the futures exchange in Chicago requiring an initial margin of 47 percent for opening trades on a five-bitcoin future.

Even though this promises lucrative shorting opportunities, traders are wary to jump in.

“I’m not totally convinced that this offers a clear enough link to enable people to play the short side and still reap the financial benefit at settlement,” Jeremy Goldwyn, a managing director at Hong Kong-based commodities and financial futures brokerage Bands Financial Ltd., told Bloomberg.

Bitcoin has enjoyed a meteoric though  volatile rally since January when  a unit of the cryptocurrency was valued at just $998.

READ MORE:New Rules Are ‘Expected Response’ to Bitcoin Becoming More Mainstream — Investor

Source: sputniknews.com

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