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Bitcoin soars past $13,000 as futures move closer to reality

Bitcoin's price at the beginning of 2017 was less than $1,000 and it went up 13 times as optimism climbed for the distributed ledger technology known as blockchain, which is at the heart of bitcoin

Rajesh Bhayani  |  Mumbai 

bitcoin, cryptocurrency

The value of exceeded $13,000 and quoted at $13,140 with a rise of over 10 per cent on Wednesday, before going down to $12,900 on international exchanges. The level of $13,000 was seen for the first time amid speculation that the widespread use of futures will help lead to digital currencies being viewed as a legitimate asset class for mainstream investors.

itself now has a market cap of more than $200 billion with the market cap at $377 billion, in which the share of has increased from 55 per cent a few days ago to 57.6 per cent, indicating that is rising faster than other crypto currencies.

On Zebpay, India’s largest exchange, the price quoted was Rs 9.44 lakh, which corrected at the time of writing to Rs 9.22 lakh. This price is still lower than the Rs 10 lakh, which was seen two weeks ago, when for the first time touched $11,000 in international The price correction in India price is due to increased inflows, taking advantage of huge arbitrage due to premium.

Now premiums have come down to 10 per cent from nearly 40 per cent two weeks ago.

has been the largest by market value. Its price at the beginning of 2017 was less than $1,000 and it went up 13 times as optimism climbed for the distributed ledger technology known as blockchain, which is at the heart of

The price surge has been accompanied by growing warnings that the speculative frenzy is an asset bubble poised to burst. Two leading Noble prize-winning economists have criticised it while one of the biggest critics of bitcoin, a US-headquartered investment bank, has decided to offer broking services to clients when started trading on US-based futures exchanges.

Cboe Global Inc. has said it will start trading futures on December 10, while CME Group Inc.’s contracts are set to debut on December 18. Nasdaq Inc. is planning to offer futures in 2018, according to a person familiar with the matter. Cantor Fitzgerald LP’s Cantor Exchange is creating a derivative, and startup LedgerX already offers options.



With inputs from agencies


First Published: Wed, December 06 2017. 23:13 IST
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