Bitcoin’s Rally Is Only Half Done At $15,000 More Greed To Come – Analysts
(Kitco News) - The buying frenzy in Bitcoin is just getting started as prices push to new record highs through $15,000, according to some analysts.
The digital currency is up 1,400% so far this year, with prices rallying almost 40% this week. Kitco’s aggregated charts show Bitcoin currently trading at $15,083.
“This market is probably only halfway through its mania,” said Bill Baruch, president of Blue Line Futures. “We haven’t seen the greed part of this rally yet. I strongly believe that prices could go to $30,000. There is not a single person out there not talking about Bitcoin.”
Colin Cieszynski, chief market strategist at the Fundamental Technician, said that he could see prices continue to go higher as the market is now completely out of sync with reality. He added at these levels, any price target is now just “arbitrary.”
“People continue to pile in the market, so there is no telling where this will end,” he said. “Bitcoin is now sucking capital out of everything else.”
The cryptocurrency’s fresh record high comes as future exchanges get reading to launch cash-settled futures contracts. Cboe Global Markets said Monday that it is launching its futures contract Dec. 10. A week later, CME Group will launch its futures contract.
"Given the unprecedented interest in Bitcoin, it's vital we provide clients the trading tools to help them express their views and hedge their exposure," Ed Tilly, chairman and chief executive officer of Cboe Global Markets, said in a release.
Cieszynski added that Bitcoin futures contracts could help to bring some sanity to the digital-currency marketplace.
However, a few of the world’s biggest banks are pushing back against Bitcoin futures. According to the Financial Times, the Futures Industry Association sent a letter to the Commodity Futures Trading Commission to voice concern over its approval of these new contracts for an untested market.
The lobby group, which represents banks like Goldman Sachs, Morgan Stanley, JPMorgan and Citigroup, said that the rapid introduction of Bitcoin futures “did not allow for proper public transparency and input.”
Both Cieszynski sand Baruch said that they don’t think this late-minute opposition will stop the launches on Dec. 10 and Dec. 18.
While Bitcoin’s 1,400% rally this year has been impressive, Baruch said that he doesn’t see value at these levels.
“I am in Bitcoin but I wouldn’t buy at $15,000. Even if prices do go to $30,000, you are only doubling your money,” he said. “I think at these levels there is better value in other cryptocurrencies.”