CryptoWatch: Bitcoin Futures Fall Below $18,000, As Cryptocurrency Itself Drops Under $17,000

U.S. bitcoin futures on Wednesday retreated below the $18,000 mark in their third full day of trading, while the spot price for the No.1 digital currency pulled back under $17,000.

Bitcoin futures expiring in January XBTF8, +1.44%  settled at $17,055, down 5.4% from Tuesday’s settlement at $18,020, according to Cboe Global Markets Inc.

Spot prices for bitcoin BTCUSD, +0.44% were at $16,654 late Wednesday, representing a decline for the day of about 3%, according to CoinDesk data. The drop comes after the cryptocurrency rose to a fresh all-time high above $17,600 on Tuesday, by CoinDesk’s figures.

Exchange operator Cboe CBOE, -1.05%   launched trading of bitcoin futures on Sunday at 6 p.m. Eastern Time, with a debut level for the January contract of $15,000. The contract is up 14% for the week.

Cboe rival CME Group Inc. CME, -0.93%  is slated to kickoff trading of bitcoin futures on Monday.

Read more: All you need to know about trading bitcoin futures

And see: SEC chairman says bitcoin offers ‘substantially less investor protection’

The price of one bitcoin has surged about 300% in the past three months, stretching its year-to-date advance to more than 1,600%.

“Clearly Bitcoin has been outperforming not just precious metals but basically every other financial asset recently,” said Fawad Razaqzada, a market analyst at Forex.com, in a note.

“Equally, though, the parabolic-like rally makes bitcoin extremely risky for those late in the party.”

Check out: 7 cryptocurrencies to watch in 2018 if you’re on the hunt for the next bitcoin

Also read: Bitcoin frenzy is not stealing demand from gold, Goldman argues

RECENT NEWS

What Advisers Misunderstand About Protection

Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more

Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines

This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more

Gyrostat Capital Management: The Hidden Assumption In Most Portfolios - Stability

Markets do not usually fail portfolios. Assumptions do. Most portfolios are built with car... Read more

Gyrostat February Outlook: Stewardship As Risk Reprices

This monthly outlook examines how financial markets are pricing risk, rather than attempting to forecast ... Read more

Gyrostat Capital Management: Why Risk Management Is Not About Predicting Risk

Why Risk Management is Not About Predicting Risk Financial markets reward confidence, but they punish certai... Read more

Gyrostat January Outlook: Calm At Multiyear Extremes

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. Its p... Read more