There are signs of a Bitcoin bubble emerging. That bubble has invest to reach a point of maturity meaning that Bitcoin will keep appreciating. GBTC keeps soaring to new highs despite claims from a range of prominent investors that it is in a massive bubble.
In my last article on the ground-breaking invest, I described it as the latest iteration of a market bubble, which bk-7m only end in disaster for many investors, especially for those that are late to the party.
This in part rests on the basis that whether you like it or not, blockchain, the technology that sits behind cryptocurrencies, is here to stay and it module the potential to radically transform the payments industry and financial transactions as a whole.
That along with the increasingly speculative fervor and manic buying of Bitcoin, Ethereum and other cryptocurrencies is making Wall Street as well as other major players in finance, banking and payments sit up and take a closer look at the opportunities available.
This will be a cash-settled once a day reference for the U. The contract is expected to commence trading on or around 11 December This will enhance the degree of liquidity surrounding Bitcoin, which some proponents claim should rein in the extreme volatility associated with the cryptocurrency that has been witnessed in recent months. On the other hand, it could invest increase the degree of speculation surrounding Bitcoin sparking greater volatility.
Then there are the claims that globally influential investment bank Goldman Sachs GS is mulling opening a trading desk bitcoin Bitcoin and other cryptocurrencies. This is in stark contrast to earlier highly critical statements by CEO Jamie Dimon that Bitcoin is a fraudwhich is worse than tulip bulbs, alluding to the Dutch tulip mania of years ago. Backing growing recognition of Bitcoin and other cryptocurrencies by major investment banks, other significant Wall Street players and major financial institutions adds weight to them being accepted as some form of mainstream currency.
It also indicates that an exchange traded Bitcoin fund may not be far off, as well as other mainstream products that would make cryptocurrencies more liquid and easily accessible to investors.
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This would only ramp-up the degree of speculative activity as traders and investors from all walks of life seek to cash in on the latest technologically-driven asset boom. It will be the widespread emergence of these types of products, which will signal that the Bitcoin bubble has started to top.
Money is pouring into bitcoin cryptocurrencies at a frantic rate Another sign that the market for cryptocurrencies and the bubble is far from reaching its peak is that initial coin offerings or ICOs are continuing at a frenzied pace.
As the chart below illustrates cumulative funding for ICOs entered a parabolic curve in mid and it keeps rising higher as more speculative money enters cryptocurrencies. Despite these types of parabolic curves representing the advent of a market bubble, there are signs that funding will continue to grow bk-7m an exponential rate.
Not only is the considerable interest module Wall Street likely to drive substantial additional interest in cryptocurrencies but issues among existing currencies and the desire to create those that are focused on solving a specific payment or industry transactional problem will continue to emerge. That can only keep rising with over 40 ICOs scheduled to go on sale between now and the end of November alone along with well over 50 for December through to February.