Tuesday, November 14, 2017

Bitcoin starting to accelerate volume now that hedge funds and institutions getting into cryptocurrencies

Perhaps one of the biggest reasons for the huge swings in price in Bitcoin over the past week has been the introduction of institutional money into the mix.  In fact with the Chicago Mercantile Exchange (CME) introducing a futures contract for the cryptocurrency by the end of the year, the market is open to a vast new slew of investors who previously haven't have been allowed to fund investments directly on Bitcoin exchanges.

Bitcoin, the red-hot digital currency, had a wild weekend and that appears to have translated into record-breaking trading volumes across the cryptocurrency market. 
Bitcoin crashed more than 25% from Wednesday's all-time high to a low of $5,617 Sunday. Bitcoin cash, the rival clone of bitcoin, witnessed an impressive rally that propelled the coin to a record-high of $2,500 early Sunday morning. 
The 24-hour trading volumes for cryptocurrencies reached a record high above $26 billion on Sunday, according to data site CoinMarketCap.com. 
To put that in perspective, that is higher than the 5-day average trading volumes for two US stock exchanges. Both IEX, the upstart exchange based in New York, and the Chicago Stock Exchange averaged less than $10 billion in trading each day for the last five days, according to data by Cboe Global Markets.  – Business Insider
Investors are desperate to find new untapped markets to move money into since the equity, housing, and bond markets are extremely overvalued and reliant upon central banks to prop up prices.  Additionally, access to cheap money is still going strong which means speculation in the cryptocurrency markets could go on for some time unless the Fed, ECB, and BOJ finally get serious about shutting off the spigot by raising interest rates.


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