U.S. bitcoin futures settled slightly lower on Tuesday in the second full day of trading for the No.1 digital currency, while the price of rival cryptocurrencies soared to records amid a fervor for virtual assets.
Bitcoin futures expiring in January XBTF8, -1.78% settled at $18,020, down 2.8% from the prior day’s settlement at $18,545, according to Cboe Global Market Inc.’s exchange.
Spot prices of bitcoin BTCUSD, -2.20% late Tuesday were trading at $17,426, representing a gain for the day of about 4.4%, according to CoinDesk. Many investors have noted the disparity in values between the spot price of bitcoin on various exchanges and its futures premium, with expectations that that gap will narrow as futures trading matures.
“A wave of short sellers hasn’t hit the market, and we see firmer bitcoin futures and a new all-time high in the bitcoin price,” said Chris Weston, chief market strategist at IG, in a note.
Cboe rival CME Group Inc. CME, +0.21% is slated to launch a bitcoin futures on Dec. 18.
“One suspects this coming Monday’s CME futures launch will attract a touch more liquidity, and that is exactly what the futures market needs right now,” Weston said.
On Monday, bitcoin futures surged as high as $18,850, after exchange operator Cboe launched trading of the contracts on Sunday at 6 p.m. Eastern Time, at a debut level of $15,000. The sharp move higher set off trading halts on Sunday.
Bitcoin climbed to a new all-time high on Monday of just below $17,400 before easing. It first topped the $17,000 mark last week.
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The price of one bitcoin as of late Tuesday has surged about 150% in the past month, stretching its monster year-to-date gain to more than 1,600%.
Meanwhile, rivals to bitcoin rallied as interest in bitcoin spilled over in to competitors like Litecoin, which is similar to bitcoin but boasts a faster processing speed. Meaning transactions can be executed at a speedier rate. A single Litecoin, also the fourth largest digital currency by value, was up 54% on the day at $321.85, according to Coinmarketcap.com.
The No. 2 most prominent cyber-asset, Ether, running on the Ethereum blockchain, gained 16% Tuesday to about $600. Ether tokens have vaulted 7,400% year-to-date.
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