As CME Group and CBOE launched trading bitcoin futures, the price for BTC surged over $20,000. Interestingly, it would smash through record highs as frequently as three times a day. However, after a while the market calmed and the rally was over.
At the beginning, the extraordinary traded volumes even sent CBOE website offline. By the end of the week however, the turmoil abated. Some experts say the bitcoin slump was related to the launch of bitcoin futures. Expectations of futures sweeping popularity with potential investors failed. It is clear that newly launched contracts do not look very interesting so far, the market took a wait-and-see stance.
It naturally inspired talks that the bitcoin bubble is about to burst. Yet, there are certain weighty arguments to quell worries. First of all, bitcoin is a groundbreaking innovation. Second, a bubble takes a bigger market, while that of bitcoin is way too narrow. Let’s take as a comparison the Dutch 1637 tulip bubble or dot-com bubble. Apparently, these bubbles took much more investment, than bitcoin. It should be noted however, that tulip bulbs and internet-based stock do not even come close to the rise in bitcoin.
