Bitcoin, the most popular of all cryptocurrencies, was on the verge of breaking through the $20k price point at the time of writing, having hit $19,750 earlier in the day.
The news comes just hours before another futures market is ready to launch its own Bitcoin traders desk, this time at CME, making the currency more accepted for institutional investors as they hope it will thus become less volatile.
However, a breakout above $20k would, according to many analysts, probably signal a "sell the news" trading following the futures listing on the CME.
'Buy the rumor, sell the news' is something that happens in most markets, particularly financial.
Sometimes traders trade based on what they believe will occur in a given economic report or event (the rumor). Once the event passes or the report is released (the news), they dump their positions and the market moves. In other words, given that many traders probably expected that Bitcoin would shortly pass through $20k, expect a significant price drop afterward.
This was also the case two weeks ago when Bitcoin broke through $10k for the first time, and the price retreated to about $8.5k, before shooting back up towards new heights.
The news of the possible $20k breakthrough comes a day after another known financial wizard, real-life Wolf of Wall Street Jordan Belfort, warned of the dangers of Bitcoin, which he said was a ‘total scam.’
Harsh words from someone who used to take a 50% commission on a trade of course.
Mr Belfort said about Bitcoin: “Promoters are perpetuating a massive scam of the highest order on everyone.
“Probably 85 percent of people out there don’t have bad intentions but the problem is if 5 or 10 percent are trying to scam you.”
The real stock market is all a scam. I hear people bitching that 40% of bitcoin is held by 1000 people that all communicate and are friends ect so they can pump and dump to get rich. And in all these years none of them got butthurt enough due to "drama" lost coins ect to call the whole scheme out.
Then we have the stock market here in the us where a handful of super brokers control the majority of Americans investments, hrmmm makes me wonder which would be easier to control. I am afraid that with futures btc trading we are looking at the stock market getting their paws into cryptos and fucking it all up just like the precious metals market.