LONDON/NEW YORK (Reuters) – Bitcoin struggled on Wednesday to recover from a three-month low it reached a day earlier, a move that traders, in the footsteps of a lukewarm reception to a futures-based product, the owner of the New York Stock Exchange.
FILE PHOTO: People walk past a sign with the logo of Bitcoin on a street in Yerevan, Armenia, September 9, 2019. REUTERS/Anton Vaganov/File Photo
Bitcoin is the largest cryptocurrency by market capitalization, fell by 2%, to a total of $8,364 at the beginning of the trade. It plunged as much as 15% on Tuesday, in short, violation is $8,000, the biggest one-day decline since July 16, before recovering some of its losses.
The Intercontinental Exchange, new york stock exchange owner, is listed Bakkt bitcoin futures on Monday, which is a lot of computer enthusiasts are expected that would result in an inflow of funds of large investors.
With the opening of the Bakkt, an ICE-cream on the bitcoin futures platform for, and was frequently cited to bitcoin’s steep gains earlier in the year.
Bakkt said of the 166 contracts traded hands on Tuesday — very impressive volume, which analysts and traders said. Some of them had read the lukewarm take-up as evidence of the continuing reluctance in the direction of the cryptocurrencies of larger investors.
“It’s one thing to give institutional money to gain access to BTC (bitcoin),” said Jamie Farquhar, a portfolio manager at the computer company, TO a Group in London. “It’s another thing to make them comfortable enough to actually buy it.”
Bitcoin futures offered through an exchange regulated in the financial centres flourish in this year, in part driven by investors looking for exposure to the computer to look for the protection of the heists, hacks and volatility that have plagued the emerging industry.
Some of the exchanges are to offer bitcoin contracts are going to be more complex derivatives, it offers merchants another way to hedge their risks in the cryptocurrency.
The CME Group, the world’s largest futures exchange operator, plans to launch options on bitcoin futures contracts in the first quarter of 2020.
A number of players in the market, and said that bitcoin is a fall on a Tuesday, it was also partly due to technical factors, a major catalyst for a price move into a growing asset has been plagued by poor price discovery, and lacking in the fundamentals.
Bitcoin has been on a downward trend over the past few weeks, a deposit of about 35% since the beginning of the month of August. A very skeptical response by regulators and politicians on the Scale, Facebook’s planned cryptocurrency, was there a reason for the decline.
Report by Tom Wilson in London and Gertrude Chavez-Dreyfuss in New York; editing by Leslie Adler, Dan Grebler and Larry King