Why Bitcoin reached yet another high?
Bitcoin price continues to soar. Price was $6300 few days ago and since then it has been setting a new record every day. And as of today it reached a peak of $6300.
Why does the price raise so much?
Lets looks at the recent events:
- Oct 28th - ZB.com, an cryptocurrency trading platform annonounced that starting Nov 1st, people from all over the world including China can exchange and trade on this platform.
- Oct 31st - CME Group, world's biggest marketplace plans to introduce Bitcoin futures contract by the end of this year.
Now lets put things together
- Oct 29th - Bitcoin reached the new high of $6300 after ZB.com's announcement.
- Oct 31st - Bitcoin reached the new high of $6400 after CME Group's announcement.
- Nov 1st - Bitcoin reached the new high of $6600 since CME Group's announcement is increasing the Client Interest.
What is Bitcoin Futures Contract and Why does it increase the Client's interest?
Until now, people who would want to invest in Bitcoin needs to buy the bitcoin and hold it to see it multiply or worse. Everybody know that if you forget the password/pin then you lose everything ( if you haven't then you can read it here https://www.wired.com/story/i-forgot-my-pin-an-epic-tale-of-losing-dollar30000-in-bitcoin/ ). Now Bitcoin Futures contract facilitates the transaction to be done in cash and you don't have to hold the commodity. It is increasing the hype among investors and hecne increasing the demand/supply thereby increasing the price.