Bitcoin trading in 2018
2017 has been a phenomenal year for bitcoin. At the beginning of the year, when the price was just $966, very few people thought it was worth a second thought. It’s hard to imagine now, but just one year ago no-one was really talking about it. Back then, it was a virtual currency that was for those that were technologically sophisticated enough to understand it.
8 years after its invention in 2009,the bitcoin price has experienced a meteoric rise. The virtual currency has reached one fresh all time high after another. This week the virtual currency hit yet another new record high of $11949. All the time that the price is soaring higher, the hype surrounding the virtual currency soars. So, what could 2018 have in store for the bitcoin?
Legitimacy
2018 could be the year that bitcoin is legitimised. This last month of 2017, will see some of the most established exchanges in the world start to trade bitcoin futures. CBOE will start trading bitcoin futures on Sunday 7th December, with Monday 8th December being its first full day. Meanwhile CME is due to offer bitcoin futures as from 18th December. The Nasdaq is expected to offer a futures contract on the bitcoin as from the second quarter of next year.
These exchanges offering bitcoin futures will mean that the bitcoin should be more regulated, and more available to mainstream investors. As a result, the bitcoin will be viewed in a more legitimate light.
More legitimate does not mean less volatile
The Bitcoin is an extremely volatile asset to trade. Last week, it dropped 20% in just a few hours. Putting that into perspective, around the time of the collapse of Lehman Brothers, the investment bank took months to drop the same 20%. Creating bitcoin futures means that investors will also be able to short (take a sell position) the bitcoin. This could actually result in bitcoin volatility increasing.
Whilst 2018 holds many unknowns for the bitcoin, legitimacy and volatility could be the key themes for the virtual currency.
How can I trade Bitcoin?
Vantage FX is an award-winning broker, based in Australia. Vantage FX enables traders to access worldwide forex markets, including the bitcoin via the Vantage FX Meta Trader 4 platform. This leading broker is renowned, on a global scale, for its security and transparency. Vantage FX is regulated by the Australian Securities and Investment Commission.
