The cryptocurrency market hit a new record high today, with a total valuation of over $187 billion.
Cryptocurrency Market Growth Won’t Stop
This week the cryptocurrency market reached a new record high. Many cryptocurrency investors are feeling euphoric since the cryptocurrency market hit a total valuation of over $188 billion for the first time ever.
The most noticeable gainer of the recent surge was – no surprise – Bitcoin. The popular cryptocurrency managed to hit a new record price of $6915 and a market cap valuation of over $115 billion at the time of writing. The second most popular cryptocurrency, Ethereum, fell slightly from $302 down to $288. Experts believe that the huge price increase of Bitcoin was caused by the recent news that the CME Group, one of the world’s largest derivatives exchange operator, would create the first bitcoin futures in the fourth quarter of the year.
Bitcoin Futures have been a trending theme not only in the Bitcoin community but also on Wall Street. Many people have hesitated to invest in the digital currency because it isn’t properly regulated and there aren’t enough protections for investors. Analysts believe that Bitcoin futures would allow traditional investors to indirectly ‘bet’ on the success of Bitcoin. CME Group chairman and CEO, Terry Duffy stated following in a CNBC article:
We’ve been working with the regulator. They understand our application. And they understand our model very, very well,
Speculators believe that Bitcoin futures are not the only reason behind the Bitcoin surge. According to a recent article by Forbes, the Chinese government might allow cryptocurrency trading again. The report suggests that Chinese regulators believe that Bitcoin might become a potential threat to the central bank of China, as it could potentially replace the official currency Yuan in daily transactions of citizens. Nevertheless, there are a lot of reasons why Bitcoin will further rise in the future as more and more governments are planning to accept and properly regulate Bitcoin as a currency and store of value.
What are your thoughts on the recent price surge of Bitcoin? Do you think that the popular cryptocurrency will further rise in the future? Let us know in the comments below!
Images courtesy of Pixabay, Coinmarketcap