One could easily get the impression that the hype about Bitcoin is over. But that’s not true. The digital currency has reached the mainstream in the financial market – more and more trading options are opening up for investors.
By Marc Stephan, boerse.ARD.de
All major cryptocurrencies have one thing in common: large exchange rate fluctuations. Therefore, conventional cryptocurrencies are like that Bitcoin hardly suitable as a means of payment in everyday life.
However, such fluctuations are quite interesting for speculative investors. In recent years, more and more financial products related to the largest cryptocurrency have been established. As of today, it will be possible for investors to take part in the traditional Chicago futures exchange CME Next Futures also Bitcoinoptions to act.
This is a milestone for Bitcoin. Bitcoin options make it easier, especially for professional investors, to secure Bitcoin investments and to participate in the movements of the cryptocurrency.
“Since the introduction of our Bitcoin futures almost two years ago, customers have shown growing interest in options as another way to hedge and trade in these markets. (…) We believe that Bitcoin options now give our customers more precision and flexibility in risk management will offer, “said the CME Group.
Effects on the Bitcoin price
CME has been trading Bitcoin futures for two years. The launch of this product in December 2017 had a massive impact on Bitcoin’s price. It climbed to a record high shortly after the start, but the biggest came as a result crash in its history.
At that time, the bitcoin price plummeted from almost $ 20,000 to around $ 3,300. Because now investors could benefit from falling prices on a large scale, which increased the selling pressure on the market. In the meantime, the Bitcoin market has stabilized again. Bitcoin is currently trading at around $ 7,900.
Increasing acceptance in the financial world
It is uncertain whether the introduction of Bitcoin options at CME will lead to similar price pressure. More important could be the increasing acceptance of the unregulated cryptocurrency in the established financial world.
The smaller platform has been making this possible since the beginning of December Bakkt trading Bitcoin options, which had little impact on the price. After the turn of the year, Bitcoin became somewhat more expensive. The reason for the recent price increase was the US-Iran conflict.
The problem remains of the high exchange rate fluctuations that have so far largely made Bitcoin unsuitable as a means of payment. If you want to pay with digital money as a private person, there will probably be interesting alternatives available in the future. Among other things, a digital euro is under discussion.