Bitcoin tumbles after dramatic gains ahead of futures launch
Bitcoin lost almost a fifth of its value in 10 hours on Friday, having surged more than 40 percent in the preceding 48 hours, sparking fears the market may be heading for a price collapse.
In a hectic day on Thursday, bitcoin leapt from below $16,000 (£11,947) to $19,500 (£14,559) in less than an hour on the U.S.-based GDAX, one of the biggest exchanges globally, while it was still changing hands at about $15,900 on the Luxembourg-based Bitstamp.
Having then climbed to $16,666 on Bitstamp at around 0200 GMT on Friday, it tumbled to $13,482 by around 1200 GMT - a slide of more than 19 percent. It was last down 9.3 percent at $15,091.97 on BitStamp.
Bitcoin pulled back ahead of the Chicago-based Cboe Global Markets exchange’s launch of a futures contract on the digital currency on Sunday, to be followed by CME Group the next week, APA reports quoting Reuters.
Craig Erlam, senior market analyst, at OANDA in London said investors may have taken profits on their bitcoin gains ahead of the Cboe launch, which could open the door to short speculators who believe the price has risen far too quickly.
“The initial bounce after this morning’s sell-off suggests there’s still appetite for buying dips but that may not last if we don’t see the kind of rebound witnessed previously,” said Erlam.
“Saying that, the way bitcoin is trading at the minute, I don’t think anyone would be surprised to see it end the day in the green,” he added.
As investors braced for the Cboe launch, some of the big U.S. banks, including JPMorgan Chase JPM.N and Citigroup C.N, will not immediately clear bitcoin trades for clients once investors start trading futures contracts, the Financial Times reported on Friday, citing people familiar with the matter.
Related news releases
- 20.04.2018State Service for Antimonopoly Policy and Consumer Protection removed subordination of Azerbaijan’s Economy Ministry
- 20.04.2018Azerbaijan’s State Committee on Standardization, Metrology and Patents liquidated
- 20.04.2018Azerbaijan-based insurers ranking for short-term liablities
- 20.04.2018Azer-Turk Bank ends Q1 on profit
- 20.04.2018Azerbaijan-based insurers ranking for long-term liabilities
- 20.04.2018Azerbaijan-based insurers ranking for short-term assets
- 20.04.2018Azerbaijan-based insurers ranking for long-term assets
- 20.04.2018Central Bank of Azerbaijan to attract AZN 350M
- 20.04.2018Azerbaijan-based insurers ranking for expenditures
- 20.04.2018Azerbaijan-based insurers ranking for revenues
- 20.04.2018Azerbaijan-based insurers ranking for profit
- 20.04.2018Azerbaijan-based insurers ranking for authorized capital
- 20.04.2018Azerbaijan-based insurers ranking for total capital
- 20.04.2018Azerbaijan-based insurers ranking for liabilities
- 20.04.2018Azerbaijan-based insurers ranking for assets
- 20.04.2018Official Exchange Rates
- 19.04.2018Minister: Hosting Expo 2025 would cost 765mln euros
- 19.04.2018Azerbaijan Industry Bank sees rise in total capital
- 19.04.2018Azerbaijan-based insurers ranking for premiums growth rate
- 19.04.2018Azerbaijan-based insurers ranking ratio of payments to premiums
- 19.04.2018Azerbaijan-based insurers ranking for market share of payments
- 19.04.2018Azerbaijan-based insurers ranking for market share of premiums
- 19.04.2018Azerbaijan-based insurers ranking for payments
- 19.04.2018Azerbaijan-based insurers ranking for premiums
- 19.04.2018Azerbaijan-based 21 insurers’ premiums exceed AZN 193M
- 19.04.2018Nakhchivan Bank increases liabilities
- 19.04.2018Trade turnover between Azerbaijan and Georgia exceeds $270M this year
- 18.04.2018Iran refuses USD in international settlements
- 18.04.2018USD rate for tomorrow announced
- 18.04.201849% of SOFAZ investment portfolio is in USD
- 18.04.2018Gunay Bank increases assets by 53%
- 18.04.2018Bank of Baku gets decline in liabilities
- 18.04.2018SOFAZ earns AZN 4.4B in Q1
- 18.04.2018IMF: Current account balance to make up 5.6% of GDP in Azerbaijan this year
- 18.04.2018Foreign companies and organizations direct more than $1.3B to fixed capital
- 18.04.2018Minister: Azerbaijan invested $1.2B in Switzerland
- 17.04.2018Personal incomes rise by 9.8% in Azerbaijan
- 17.04.2018Azerbaijan sees 2.3% growth in economy in Q1
- 17.04.2018Azerbaijan to reduce tax burden on small and medium business
- 17.04.2018CEO: Central Bank of Azerbaijan sold sufficient cash to banks
- 15.09.2017GDP amounts to AZN 43.7M in Azerbaijan this year
- 15.09.2017Average exchange rate of manat for August announced
- 15.09.2017State budget executed with deficit of AZN 539M
- 15.09.2017Azerbaijani population spend AZN 11B to food this year
- 15.09.2017AZN 10B invested in Azerbaijan’s fixed capital this year
- 15.09.2017EBRD may become shareholder of IBA