Bitcoin Price Keeps Smashing Records, But Why?

Bitcoin Price Keeps Smashing Records, But Why?
geralt / Pixabay

Today, Bitcoin hit a new all-time high of $7,200 because of two things:

  1. The world’s biggest exchange, CME Group Inc., announced that they will be launching a futures contract based on Bitcoin by the end of this year. If the plan comes to fruition, it will lock in Bitcoin’s legitimacy on Wall Street, securing its place within mainstream financial markets.
  2. The most anticipated fork of the year, SegWit2x, is confirmed for activation on November 16. Some exchanges will accept the new currency, including NYSE backed Coinbase, who emailed its customers late last night staying, “any user storing bitcoin on Coinbase will be credited with an equal amount of the new Bitcoin2x asset, and users will be able to trade both currencies after the fork.” Other large exchanges, like GateCoin and BitMEX, will not support the fork.

Given the significance of these announcements, coupled with the fact Bitcoin climbed 10% in the past few hours, we have compiled several quotes for you from experts in the industry.

  • DataWallet CEO and founder Serafin Lion Engel “The CME announcement marks the official inflection point of bitcoin crossing the chasm from being championed exclusively by tech savvy early adopters to starting its proliferation among established financial institutions. While it was easy for critics to label early adopters’ enthusiasm as foolish, the adoption of bitcoin by institutions such as CME gives the cryptocurrency a seal of approval that will eradicate even the most well-reasoned criticism pundits may voice. This paves the way for bitcoin living up to its full potential and soaring high into the five digits.”
  • ULedger CTO Taulant Ramabaja “CME and similar Futures offerings for the traditional financial industry will make it possible for these institutional investors and funds to take positions within the bitcoin and later general cryptocurrency ecosystem, while complying with their existing counterparty and regulatory requirements. We can expect a lot of large scale institutional money to flow into the bitcoin and cryptocurrency ecosystem from now on, assuming future regulation won’t hinder the emergence of cryptocurrencies as a legitimate asset class.”
  • Nucleus CEO Abhishek Pitti: “While it’s not the first to announce plans for bitcoin futures, CME may have a better chance of obtaining SEC approval for its proposal. If CME does manage to achieve this feat, one of the largest barriers in introducing a bitcoin-based ETF may soon be removed, which will open up the floodgates for both institutional funds and retail investors who haven’t had exposure to bitcoin to get in on some of the action. We could very well see bitcoin going multiple folds higher when that happens. However, bitcoin is quite different from traditional commodities like gold, copper, or rice that are currently traded in the futures markets. Thus, there will be a lot of teething issues that CME will face, as it does not have any other commodity that behaves like bitcoin. What’s more, this commodity can be procured in many more unregulated cryptocurrency exchanges around the globe, which could potentially steer away a lot of traditional and conservative investors.”
  • Coinsource CEO Sheffield Clark – “Bitcoin is in a phenomenal position right now. People sometimes overlook the fact that bitcoin has been the highest performing currency four of the past five years, and its unprecedented growth in value has been something big money traders have wanted to get their hands on for a while. One of bitcoin’s few setbacks was accessibility to institutional money; now that’s about to change. I’m excited for the CME and for the rising digital currency asset class. I’m also excited by the growing mainstream adoption of bitcoin, and its subsequent surge in value. Today is a big day for bitcoin.”
  • Enigma Head of Growth Tor Bair –  “The launch of Bitcoin futures on CME is another signal of the ongoing professionalization of cryptoasset markets. This move by the CME will bring new professional interest in cryptoasset investment and trading. While providing new demand for cryptoassets, it also creates significant opportunities for data-driven investors and traders who stand to benefit from increased liquidity and volume.”
  • Leverj CEO Bharath Rao: Institutions have been dabbling gently in the crypto market using specialized hedge funds as vehicles, but the introduction of bitcoin futures by the CME opens a huge new opportunity for gaining exposure to crypto currency. After all, bitcoin is the bellwether of the entire crypto market, and a regulated, developed exchange product gives confidence to trade large size for many institutions. The ability to hedge against bitcoin enables creation of all manner of crypto products, in addition to simple investment and trading. We are likely to see a flurry of activity in this sphere. CME’s introduction of bitcoin futures may herald the first step in mainstream acceptance of crypto as a real asset class.”
  • Node40 CEO Perry Woodin: “This fork is an extremely interesting and contentious one. Division exists between developer camps, mining pools, and of course the exchanges. I anticipate strong movement of bitcoin from wallets to the exchanges supporting the new currency, because many will see it as an opportunity of free money. But what I will stress, is that, under current IRS regulation, bitcoin is indeed a form of property and is subject to capital gains tax once it’s sold. I anticipate similar rules for Bitcoin2x, and from past experience, the majority of owners will blatantly ignore their digital currency tax compliance responsibilities.

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