markets

Bitcoin rebounds to $10,500 after US regulator approves futures

CFTC announcement is a watershed moment for the cryptocurrency that could lead to greater regulatory scrutiny

Reuters
18:39 December 1, 2017

LONDON: Bitcoin rebounded on Friday to hit the day’s highs above $10,500, recovering from an earlier dip below $9,500, after the US derivatives regulator said it would allow CME Group and CBOE Global Markets to list bitcoin futures.

The announcement by the Commodity Futures Trading Commission (CFTC) paves the way for CME and CBOE to become the first traditional US regulated exchanges to launch trading in bitcoin-related financial contracts, a watershed moment for the cryptocurrency that could lead to greater regulatory scrutiny.

Bitcoin, which had been trading at around $10,150 on the Luxembourg-based Bitstamp exchange before the news, jumped to as high as $10,513 in the 20 minutes that followed, leaving it up more than 5 per cent on the day.

It has been a volatile week for the biggest and best-known cryptocurrency. On Wednesday, bitcoin smashed through $10,000 before rocketing past $11,000 less than 12 hours later to an all time-high of $11,395, and then plunging around 20 per cent in the hours that followed.