Bitcoin Prices Drop Ahead of CME Futures Launch

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Updated: Dec 10, 2017, 08:58 UTC

Currently, on Sunday morning and ahead of CME Bitcoin's futures launch, it is headed back to $13 072.60, down -9.80%.

On December 8th, Bitcoin reached the $18,300 mark, only to drop by $3,000 after experiencing a major correction. Currently, on Sunday morning and ahead of CME Bitcoin’s futures launch, it is headed back to $13,072.60, down -9.80%. It was trading at $10,800 just a week ago. In South Korea, it traded with premiums of around 20%, where previously they hadn’t exceeded 5-10%.

Bitcoin has proven to all that it’s able to overcome gravity. Its exponential rise in value, however, isn’t simply due to the impending arrival of institutional investors. Cryptocurrencies, and Bitcoin, in particular, have become extremely popular with the general public, and as prices move ever higher, the desire to invest continues to grow. Investments of a few hundred dollars on «Black Monday» aren’t dangerous. More dangerous is the adoption of a speculative approach, where investments of tens or even hundreds of thousands of dollars are made to obtain a quick profit.

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This Sunday, the CBOE will launch futures and options on Bitcoin, which may lead to another wave of corrections over the weekend. The first Bitcoin futures transaction will take place on Sunday at 23:00 GMT.

As the cryptocurrency market grows, so do the risks associated with investing in it. On Thursday morning, we received news that the largest site for the provision of computing power, NiceHash, was hacked. According to community data, $62M was stolen from the hot wallet, which led to the service being suspended for 24 hours. After a series of similar breaches throughout the year, investors should reconsider keeping their funds in such exchanges, as well as the process of cloud mining, due to the rise in the number of hacker attacks.

Chief Executive Officer of NEX Group, Michael Spenser, who considers Bitcoin to be a bubble, said that he expects growth to reach $20,000 before experiencing a harsh correction. A month ago, such forecasts may have seemed fantastical, today, however, it would seem this may not be optimistic enough.

This post was originally published by EarnForex

About the Author

Ed Andersoncontributor

Ed Anderson has over 35 years of experience in the financial markets, having worked in London, New York, Toronto, Singapore and Australia. Ed provides in-depth Fundamental and Technical Analysis, as well as frequent market insights on multiple asset classes, to the benefit of FxPro clients.