Bitcoin slumps below $16000, triggering a freeze of futures trading

A single bitcoin began the year at $970 yet is now over $16,000

A single bitcoin began the year at $970 yet is now over $16,000

A new wave was added to the never-ending Bitcoin mania when the Chicago Board of Exchange (CBOE) became the first major derivative exchange to launch Bitcoin futures on December 10.

Bitcoin futures listed on CBOE are based on the cryptocurrency's prices listed on the Gemini bitcoin exchange.

With CBOE's launch, Bitcoin rose past $15,000 - as of the time of writing, it now sits above $17,000.

The price of the largest cryptocurrency by market value fell 4.9 percent to $16,395 at 2:02 p.m.in NY, after dropping much 8.7 percent, according to prices compiled on Bloomberg. Bitcoin earlier hit a record high of $17,270.

Wall Street investment firm Cantor Fitzgerald, as indicated earlier this month by the Commodity Futures Trading Commission (which oversees the USA market for derivatives), is preparing to create binary options tied to bitcoin.

AAA: Premium Fuel Not Worth The Price
AAA Northeast found in its weekly survey released Monday that the price of self-serve, regular is averaging $2.49 per gallon. AAA says drivers can expect pump prices to continue to drop heading into the holiday season as supply strengthens.

Also bearish on bitcoin was Stephen Roach, a Yale University economist who told CNBC's "The Rundown" that exchange legitimization makes bitcoin "somewhat unsafe [for investors]", citing a "lack of intrinsic underlying economic value to the concept". When traders look to exploit the difference between where they feel where prices will be over time and where the futures contract is priced - arbitrage, or trading against the forward bias in FX markets - volatility tends to be dampened in the spot market.

The arrival of Bitcoin futures marks the beginning of a new era for cryptocurrencies. The CME Group is expected to launch its futures contract on December 17. At the end of the day, more liquidity, particularly with the introduction of two-way trading via futures, shouldn't necessarily just inflate prices.

The soon-to-be-launched bitcoin futures on CME will also be cash-settled. Perhaps this means that the explosion of volatility seen in recent weeks won't be repeated that often in the future. Bitcoin was up more than 1,600 percent so far in 2017, having started the year at less than $1,000.

Bitcoin futures are here. But while volatile compared with traditional currencies or assets, the rise on Monday was relatively tame for bitcoin. That's in line with Monday's gain of 9.6 percent and minor in comparison to last Thursday's 20 percent surge.

But the derivative that would really damp the current crypto frenzy and make digital tokens a speculator-friendly - if not investment-worthy - commodity, currency, tulip, or whatever, isn't futures.

Comcast drops out of Fox race
A deal with Disney could also face fewer United States regulatory hurdles, although it is extremely unlikely to be waved through. This move leaves the Walt Disney Company DIS as the lone remaining bidder, in a deal that could now close as soon as this week.

Bitcoin was set up in 2008 by an individual or group calling themselves Satoshi Nakamoto, and was the first digital currency to successfully use cryptography to keep transactions secure and hidden.

The futures are cash-settled contracts based on the auction price of bitcoin in US dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.

Bitcoin was set up in 2008 by an individual or group calling themselves Satoshi Nakamoto, and was the first digital currency to successfully use cryptography to keep transactions secure and hidden, making traditional financial regulation hard if not impossible.

Whether investors judge that to be too high or too low given all the other interest rates in the economy, including, most importantly, the USA dollar one of 1.52 percent, will see spot and futures prices adjust accordingly.

On the flip side, the launch of Bitcoin futures will attract greater scrutiny from the regulators which will cast a shadow on the fate of the Bitcoin in the long run.

Sky stake changes hands in £39 billion Disney-21st Century Fox deal
The UK Competition and Markets Authority is expected to publish its provisional findings in January. "We are excited by the possibilities of the new Fox , which is already a leader many times over".

The launch has so far received a mixed reception from big USA banks and brokerages. Brokers including E*Trade Financial Corp., TD Ameritrade Holding Corp. and Ally Financial Inc. will probably follow suit.

Latest News