{"id":13731,"date":"2017-12-19T22:34:51","date_gmt":"2017-12-20T06:34:51","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=13731"},"modified":"2018-01-30T06:03:29","modified_gmt":"2018-01-30T14:03:29","slug":"bitcoin-becoming-real-player","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/bitcoin-becoming-real-player\/","title":{"rendered":"Why Bitcoin is Becoming a Real Player"},"content":{"rendered":"

The weekend of December 16-17, 2017 saw new highs in the bitcoin futures index<\/a>. Is it a bubble? CNN\u2019s Daniel Shane<\/a> said bitcoin futures trading \u201cjust got a whole lot bigger.\u201d As the bubble got bigger, the warnings got louder.<\/p>\n

The involvement of top financial institutions in the bitcoin market underscores\u00a0its growing mainstream acceptance even as government officials, business leaders,\u00a0and economists continue to warn people against investing in it.\u00a0\u00a0<\/em>-Daniel Shane<\/p>\n

Bitcoin value dropped about $1,000 between December 16-17, and bitcoin cash soared to a record high then lost half its value within that 24-hour period. Taking an average from several exchanges, CME bitcoins futures index must be traded in blocks of five. Opening trades in bitcoin futures on a reputable exchange could calm the nervous bitcoin value volatility. The New York Nasdaq<\/a> is anticipated to offer bitcoin futures trading in 2018.<\/p>\n

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About Bitcoins<\/strong><\/p>\n

Bitcoins are more than a fad, says a recent Cambridge University study of cryptocurrencies<\/a>. Bitcoins are the world\u2019s first decentralized digital currency, or \u201cvirtual currency.\u201d Bitcoins are also called \u201ccryptocurrency,\u201d and what distinguishes them most \u2013 aside from being the first virtual money \u2013 is they are not administered or managed by a single authority, government or bank.<\/p>\n

Bitcoin Futures Trading<\/strong><\/p>\n

Trading bitcoin futures will offer investors some level of protection against major losses<\/a> due to the commodity\u2019s squirrely fluctuation. Traders are urged to research the bitcoin market and check the dates on blogs and other information because much of the data in November 2017 internet posts about bitcoins were outdated by December 2017. Bitcoins and what we know about them is evolving quickly.<\/p>\n

The CME opened trading in bitcoin futures December 18, 2017<\/a>, a move that gave bitcoins the legitimacy of mainstream trading. Eight hours into the day, the trading was going smoothly as the spot price reached $20,000 and eased back to $18,800. The January 2018 futures price dipped down during the first hours of trading from $19,500 to $19,370, which indicates investors believe bitcoin will hold its value through and into January 2018.<\/p>\n

Bitcoin is Becoming a Major Player<\/strong><\/p>\n

Investors feel if a trusted group like CME offers bitcoin futures trading, it validates the commodity\u2019s authenticity. However, CME \u201calso has a track record of getting into some pretty esoteric products,\u201d says Jeremy Grant of strategy+business.com<\/em><\/a>. In 2006, CME initiated a futures contract based on the likelihood of snowfall at various locations. Futures and options based on the weather must\u2019ve made sense to someone at the time . . . and so investors are wondering if bitcoin futures index is a lot like snow.<\/p>\n

It might melt.<\/strong><\/p>\n

The bottom line, Grant continues, is bitcoin is not as speculative as snowflakes because the planned futures contract is cash-settled as opposed to physically settled. \u201cFutures traders love cash-settled plays because there\u2019s no need to store or hold a particular commodity or underlying asset to make good on the bet.; it\u2019s a purely financial transaction.\u201d Traditionally, traders do well in a volatile market and bitcoin futures trading is all that.<\/p>\n

Are You Ready for Bitcoin Futures Trading?<\/strong><\/p>\n

The online application<\/a>\u00a0 to open an account for bitcoin and other commodity futures trading takes about 20 minutes to complete; approval is somewhere between 24-48 hours. Cannon Trading<\/a> Vice President Ilan Levy-Mayer<\/a> says, \u201cJust like you, we\u2019re excited but cautious about investing in bitcoin futures.\u201d The more we learn, the more you <\/em>will learn because we keep our clients informed. Trading commodity futures and options involves a substantial risk of loss. Here\u2019s what may influence or add to the volatility of the bitcoins futures index:<\/p>\n