Bitcoin leads the way in the cryptomarkets, supported by a bounce back in the futures contracts, with the gains coming in spite of regulators looking to spook investors.
Bitcoin has certainly had its moments through the year, but perhaps December will be considered to be its defining moment.
The month’s highs and lows have seen investor sentiment shift from moments of euphoria to ones of sheer panic.
Through the weekend and Christmas Day, Bitcoin continued to see some sizeable moves, hitting a weekend high $15,756.22 and low $12,488 before the ship steadied on Monday in what was a relatively tight ranged day by Bitcoin’s standards.
Bad press and the futures markets have certainly contributed to the gyrations of late, with central banks and governments looking to deliver more dire warnings over the cryptomarkets, in a bid to avert a continued outflow from fiat currencies that could ultimately end in tears, if you believe the bubble stories that have been doing their rounds.
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At the time of writing, Bitcoin is up 9.62% to $15,250 and with such sizeable swings, we will expect the more speculative investor to be a little quicker to lock in profits following the volatility seen through the month.
The good news for the Bitcoin bulls and Bitcoin Billionaire Club is that Bitcoin managed to dust itself off and move back to $15,000 levels, which is still a 53% gain through the current month. That’s not quite as impressive as the gains seen across some of the other cryptocurrencies, but considering the fact that Bitcoin is sitting more than 30% off its December record high, it’s not that bad, though the month is not quite over.
For the less savvy investor looking for direction, the smart money is likely to remain a key driver for Bitcoin and today’s Bitcoin futures have certainly done well, suggesting that the latest round of warnings from central banks and governments may be little more than hype. After all, many a central bank and government will likely be wanting to have greater control over the cryptocurrencies that have remained elusive until now.
Anonymity and the decentralized nature of the cryptocurrencies has enabled investors to bypass any government or central bank crackdowns.
At the time of writing, CME Bitcoin futures was up $1,235 to $15,370 for January expiry and that’s sitting above Bitcoin’s current price of $15,250. Trading may be on the lighter side, but it’s all relative and barring a sudden shift in sentiment that would likely need to be news related, today’s gains are unlikely to evaporate.
Of interest will be how Bitcoin moves in the coming days as trading volumes pickup and whether the negative sentiment going into the holidays returns. The futures prices suggest otherwise, but even the futures markets have been choppy in their first week, with the CME’s January contract seeing quite sizeable swings. The moves may flatten out once more institutional money comes in through the ETFs that are in the process of launching, or so the theory goes. Theory has seemed to have been of little use until now, which has certainly made it a trickier investment this month.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.