Bitcoin crosses $12,000 valuation, as financial institutions re-think cryptocurrency position

The price surge of Bitcoin has been accompanied by a growing chorus of warnings that the speculative frenzy is an asset bubble poised to burst.

By: Bloomberg | Published: December 6, 2017 3:46 pm
The price surge of Bitcoin has been accompanied by a growing chorus of warnings that the speculative frenzy is an asset bubble poised to burst. The largest cryptocurrency by market value has soared from less than ,000 at the start of the year as optimism climbs for the distributed ledger technology known as blockchain that is at the heart of Bitcoin. (File Photo)

Bitcoin surpassed $12,000 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.

The largest cryptocurrency by market value has soared from less than $1,000 at the start of the year as optimism climbs for the distributed ledger technology known as blockchain that is at the heart of Bitcoin. The price surge has been accompanied by a growing chorus of warnings that the speculative frenzy is an asset bubble poised to burst.

This new growth recorded in the last few months comes as professional networking site LinkedIn recently showed an increase in job listings, with people across the globe posting skills in handling cryptocurrencies. Given the added stability of this currency over the second half of 2017, coders and cyber developers are looking to increasingly digitise their payments, away from the scrutiny of central banks and other financial institutions.

Cboe Global Markets Inc has said it will start trading bitcoin 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 bitcoin derivative, and startup LedgerX already offers options. As the Bitcoin valuation recently crossed $10,000, the White House and the International Monetary Fund accepted taking interest in the digital currency. The IMF had also played down the need for the currency to undergo financial monitoring.

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