The price of bitcoin had remained relatively stagnant over the past two months, but investors appear to be quietly gearing up for a rally, at least according to a new report released by the Chicago Mercantile Exchange (CME).
Launched at the height of last year’s bitcoin rally, the CME bitcoin futures contracts were the second to hit a major exchange. The platform, which was originally praised as a new way to garner mainstream interest in the cryptocurrency space, fell short of enthusiasts’ expectations, as the influx of new blood failed to materialize.
Shortly after the launch of the new futures platform, prices began to plummet, and the bear market took hold. Economist Yukio Noguchi noted, “Because it’s now possible to trade on bitcoin futures, you’ll never see a rapid surge again.”
But now, it seems sentiment may be returning to the market.
In CME’s report, the exchange notes that the daily trading volume for bitcoin futures has increased by 41 percent from the second to the third quarter. Open bids also witnessed a sharp gain, rising 19 percent from the second quarter.
(Click to enlarge)
The report comes as many other bullish factors are beginning to take hold. From institutional interest to strong technical indications, analysts and even retail investors can feel it in the air. Related: From Gold To Bitcoin: The Evolution Of Money
Additionally, the space is undergoing somewhat of a ‘coming to age.’ The tit-for-tat dramas between major personalities are coming to an end, the minefield of scam ICOs has quieted down, and the market as a whole has become more immune to the influence of FUD.
Bakkt Futures and the looming SEC ETF decision
With some major, potentially game changing, news in the pipeline, many are suggesting that November could be 2018’s breakout month.
CNBC cryptocurrency analyst Ran Neuner noted, “Last year, around this time, BTC went from $6691 (Nov 11) to $20000 (Dec 17) in 5 weeks. This on the back of the expectation and launch of a cash settlement BTC futures contract. An ETF is a way bigger deal & requires actual purchase of BTC. 2 looming SEC decision deadlines ahead.”
In addition to the SEC decision on ETFs, scheduled for November 5th, ICE – the owner of the New York Stock Exchange - is set to release its much-hyped Bakkt platform, opening up a global network to investors, merchants and consumers to “buy, sell, store and spend digital assets.”
What do you think? Will November be a breakout month for bitcoin?
By Michael Kern via Crypto Insider
More Top Reads From Safehaven.com: