Summary:

• CME launches Bitcoin futures a week after trading began at CBOE, the price slumped after opening above $20k
• Ronnie Moas, the founder of Standpoint Research who predicted a Bitcoin’s rise, forecasts the cryptocurrency will continue its rally
• CFTC warns of dangers from Bitcoin futures after allowing them
• US government plans to sell off seized Bitcoins worth as much as $10 million

A week after a launch of Bitcoin futures at CBOE the same scenario took place at CME on Sunday, the largest futures exchange. However, as opposed to a rise in Bitcoin price after the start of trading at CBOE there was just a mediocre jump this time round after the price retreated. The futures opened at $20,650 and it rose slightly but it fell back to $18,760 about four hours of trading. Let us recall that a key difference between CBOE and CME futures is that the CBOE contract represents one Bitcoin, while a CME contract represents five Bitcoins. The CBOE also settles its futures against a daily price auction from Gemini, while the CME uses its own Bitcoin reference rate which tracks several cryptocurrency exchanges.

From a technical point of view Bitcoin (BTCUSD on xStation5) remains in an uptrend while a pivotal support area can be found nearby $17,500. That level is also underpinned by an ascending trend line which has stopped slides several times as of yet. On top of that we may also spot that the latest pullback was around $1,800 and once the same corrective move takes place once again declines should not be deeper than $17,500. Source: xStation5

While Bitcoin futures were already started at the CBOE and the CME there are more forecasts where the price could go from the current levels. One of the most boldest prediction has been presented by Ronnie Moas who is the founder of Standpoint Research. He said “Bitcoin is already up 500% since I recommended it in the beginning of July, and I’m looking for another 500% move from here”. Let us remind that Moas put a $5,000 price target on Bitcoin for the next year. Now, when his projection has been already realized he’s outlined much more bolder estimation saying that “the end-game on Bitcoin is that it will hit $300,000 to $400,000 at it will be the most valuable currency in the world”. Notice that his aggressive bullish call is contingent on increasing demand for the virtual currency which should naturally drive the price higher given that supply will remain limited to 21 million coins.

Ripple (XRPUSD) was slipping over the course of the past weekend after an incredible surge made on the back of hopes regarding tests of a Ripple-based payments system in some South Korean and Japanese banks. Technically the cryptocurrency could be already poised to resume its upward trend as a bullish engulfing has been drawn of late. As a result one cannot rule out a rise toward $0.85 while a key support stands constantly at $0.615. Source: xStation5

Moving on, it’s worth mentioning a statement issued by the US Commodity Futures Trading Commission (CFTC) on Friday detailing risks of virtual currencies trading and urging investors to educate themselves before involving in Bitcoin. The report says that “like all futures products, speculating in these markets should be considered a high-risk transaction” and therefore “customers should inform themselves as to how the index or auction prices used to settle the contract are determined”. The regulator singled out several risks specific to Bitcoin including manipulation, hacking of customer wallets, lack of regulation and volatility.

At last one needs to be prepared that the US could pose quite a relevant risk for the Bitcoin price in the nearest future as the government is planning to sell-off Bitcoins (BTC and BCH) seized during an opioid drug case which now are worth approximately $10 million. While the amount of Bitcoin owned by the US government accounts for just a small portion compared to those held by the Bulgarian authorities it could be a notable risk factor for the extremely hot market.