The cryptocurrency has had a bullish streak completely the week following the CME’s statement that it will introduce bitcoin expectations contracts.
According to data from CoinDesk, the virtual money reached an all-time high of $6,994.01 at about 3:04 a.m. ET Thursday. After nearing $7,000, the price withdrew slightly but held above the $6,900 mark.
A surge in the digital coin’s value saw the total business value of all cryptocurrencies top $188 billion for the first time Wednesday. The business cap of bitcoin alone is currently $115 billion, according to data from shareholders website Coinmarketcap.
On Tuesday, the CME Group, the world’s extensive derivatives operator, said it would add bitcoin futures contracts. The introduction of such a result could bring more institutional investors into the market. Investigators believe this has been raising the price.
CME said its bitcoin prospects contract would be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), launched in Fall last year with London-based online buying platform Crypto Facilities.
“This is bitcoin spanning the divide between the wild west of finance to the mainstream,” Charles Hayter, CEO of cryptocurrency corresponding website Crypto Compare, told News in an email Thursday.
“Futures from an urgent exchange bring bitcoin and cryptocurrencies into the administrative fold. This allows more complex business products to be created and will ultimately open the doors to institutional money.”
The digital currency’s value has risen almost 600 percent since the outset of the year. Bitcoin was trading at $6,949.79 at 4:15 a.m. ET, according to CoinDesk.
A number of governors have warned of illicit activity surrounding cryptocurrencies like bitcoin.
In September, China banned a study known as “initial coin offerings” (ICOs). An ICO is a crowdfunding system for firms to raise funds by selling new cryptocurrencies.
China’s regulators also advanced to close down domestic bitcoin changes later that month. Both times sent the price of bitcoin down sharply.
And on Wednesday, the U.S. Securities, and Exchange Commission announced that celebrity support of ICOs could be “unlawful” if they do not reveal how they are benefiting.
Banking officials like JPMorgan CEO Jamie Dimon and Blackrock CEO Larry Flint have also scrutinized the cryptocurrency.
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