Bitcoin towers by 60 percent in a month, exceeds $7,000

The beginning of November witnessed Bitcoin price strongly shoot up more than 17% in just three days from the $6,000 level. In Thursday’s session last week, the world's most famous digital currency approached $7,000 per unit, marking an incredible gain of 640% since the first quarter of this year.

According to Coindesk, Bitcoin was worth $ 7,096 at 19:28 MSK on Nov 2 with its capitalization reaching US$118 billion (6.8 trillion rubles), exceeding the market value of Gazprom plus Rosneft (about 6.1 trillion rubles).

The primary driver of this surge was the Chicago Mercantile Exchange - the largest futures exchange in the US, which announced its plans to start trading futures contracts for bitcoins before the end of 2017.

Chicago Mercantile Exchange
Source: bits.media
Alexander Vasiliev, Deputy Director of the Innovation Department at RosEvroBank, appraised that the surge in Bitcoin price "speaks up the change in the consciousness of the investment community" because investment funds and industry representatives are beginning to allocate certain resources to the proactive financial instrument, driving a large money stream to this potential market.

According to Spencer Bogart, head of the analytical department at Blockchain Capital, the appearance of a fully-regulated derivatives market will pave the way for demand from financial institutions. He also said that although Bitcoin’s capitalization seemed large, it was negligible compared to the size of the world’s derivatives market ($639 trillion).

Along with bitcoin futures, the CME contemplated calculating its own value index based on quotations Bitstamp, GDAX, itBit and Kraken. Vadim Merkulov, a senior analyst at FID Finance, judged that the CME would link exchange funds and Bitcoin to the same index, helping boost the demand from retail investors.

"The rate of appearance of new cryptocurrencies (altoquins) and countless ICO-dummies really reminds the situation with dotcoms. That bubble eventually burst, but the ash grew up large companies," said Kuptsekevich, a virtual currency analyst.

Alexander Vasilyev from RosEvro bank appraised that Bitcoin price could ascend to $7,800 in December 2017. However, he added that investing in cryptocurrencies remains risky because regulators haven’t yet developed a suitable approach on this market.
See also:
Weekly market overview September 17 - 21
Weekly market overview September 17 - 21
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