Bitcoin Breaks CBOE as Futures Up 20% Hours After Launch

Within three hours after its listing of bitcoin futures, the website and online trading platform of the Chicago Board Options Exchange (CBOE) were inaccessible, due to an unexpected spike in demand and volume. According to Tokyo-based technology journalist Yuji Nakamura, CBOE bitcoin futures processed $401,600 worth of trades within the first 20 minutes. Only the Beginning, Billions Expected to Flow Into Bitcoin Market Upon its debut earlier this year, the US Commodities and Futures Trading Commission (CFTC)-approved bitcoin derivatives, futures, and options exchange LedgerX announced that it had settled $1…

Rising Transaction Costs Could Trigger a Bitcoin Price Crash: CME Economist

A CME Group economist believes that rising transaction costs could cause a bitcoin price crash. Erik Norland, an executive director and senior economist at U.S. derivatives exchange operator CME Group, published an article theorizing that the rising cost of bitcoin transactions could be an early indicator of an impending bitcoin price crash. The average transaction cost is calculated by dividing miner revenue — which includes both transaction fees and block rewards — by the number of transactions made across the network. Though similarly named, it’s important to note that the…

Bitcoin and the Quantity Theory of Money – Why Bitcoin is Undervalued

If you were awake in your college economics class you might recall Milton Friedman’s classic theory: The quantity theory of money.  Essentially, Friedman argued that the general price level is directly proportional to the amount of money in circulation  We can apply Friedmans logic to bitcoin and use it as a starting point for valuation. The root of understanding the quantity theory of money is the equation of exchange,  MV=PQ. Ok, what does the formula mean again? MV=PQ.   M= The stock of money.  How much money is out there…

Number of Bitcoin Users to Reach 200 Million by 2024

According to RT, analysts expect the number of bitcoin users to reach 200 million by 2024, within the next seven years, given the current exponential growth rate of bitcoin. 5 Million Unique Users in March A Cambridge study conducted by Dr. Garrick Hileman and Michel Rauchs in March of 2017 revealed that the number of active users of bitcoin wallets was in the range of 2.9 million and 5.8 million. However, since then, proportional to the market valuation and price of bitcoin, the cryptocurrency’s user base has grown at a…

Bitcoin Price Ebbs From $18,000 High as Market Continues to Set Records

The bitcoin price made another bullish run on Thursday, reaching above $18,000 for the first time in its brief history. Friday morning, however, the bitcoin price began to ebb from this peak, providing altcoins with an opportunity to begin to mount a recovery after Thursday’s carnage. Source: CoinMarketCap At the height of the rally, bitcoin carried the cryptocurrency market cap above $450 billion, briefly making the sum total of all cryptocurrencies more valuable than tech conglomerate Alibaba. However, at the time of writing, the cryptocurrency market cap was valued at…

a Run-Down of Thursday’s Dizzying Movements

Widespread outages. A $4,000 spread between two of the largest Western exchanges. The fastest $1,000 bitcoin price surge in history. Those were just a few of the events that bitcoin traders encountered on Thursday — a day that proved to be one of the most frantic in recent memory. The bitcoin price began the day on an incline, punching through $15,000 less than 24 hours after reaching $13,000. The rapidity of bitcoin’s climb triggered a mass exodus from the altcoin markets, as traders rushed to increase their bitcoin holdings to…

GDAX Goes Down After Price Clips $19,000

Bitcoin’s record-setting run took another unprecedented turn on Thursday, as the bitcoin price ripped past $19,000 on cryptocurrency exchange GDAX, leaving a trail of altcoin carnage in its wake. However, the rally was characterized by unusual trading activity, including one of the largest BTC/USD spreads in recent memory. Bitcoin Price Clips $19,000 The breathtaking climb saw bitcoin rise more than $5,000 in a span of 12 hours. The journey from $17,000 to $18,000 took just fifteen minutes, and the leap from $18,000 to $19,000 was accomplished in five. By 11:30…

Bitcoin Price Hits New All-Time High, is There a Limit?

The global average bitcoin price across major markets including the US, Japan, South Korea, and Europe has surpassed $16,000, peaking at $16,422. Within the past 24 hours, the price of bitcoin has recorded an increase of nearly 30 percent, outperforming all of the top ten cryptocurrencies in the market, including Ethereum, Bitcoin Cash, and Litecoin. $10,000, the “Psychological Level” Passed, Anything is Possible? George Kikvadze, a highly regarded bitcoin investor and vice chairman at leading bitcoin mining firm Bitfury, stated that the $10,000 mark was the psychological level for the…

Investment Firm Pegs Bitcoin Value at $655

Needham & Co. LLC, a New York City-based investment firm, has begun covering the Bitcoin Investment Trust (BIT), giving it a “buy” rating and a $62.00 price target (PT). Needham estimates the present per-bitcoin value at $655. BIT is sponsored by Grayscale Investments, which is owned by Digital Currency Group, which invests in the blockchain and digital currency ecosystem. BIT is a private, open-ended trust that invests only in bitcoin. Hence, the value is based primarily on the bitcoin price. Needham, according to a 39-page report explaining its “buy” at…