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Bitcoin Reaches Another All Time High, Receives More Buyer Support After CME Announcement

CME group announced on Tuesday, October 31st that they would be adding Bitcoin futures to their list of trading instruments.

The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. Bitcoin futures will be listed on and subject to the rules of CME.

This is considered a major step for Bitcoin and the market took notice. Bitcoin surged to an all time high of $7,350 before retreating slightly. The addition of Bitcoin futures on CME will help bring stability to the currency.

UBS Economist Paul Donavon has again likened the situation to that of the tulips bubble burst in the 1600's.

"The idea of not physically delivering the product was rather shocking to contemporaries (as it turns out, the market crashed before bulbs could have been delivered anyway – bulbs were lifted in June 1637 for physical delivery). Traders met in groups (in taverns), called 'Colleges.' Think of the taverns as the cryptocurrency exchanges of their day," Donovan said.

The CME Group said earlier this week that it plans to launch bitcoin futures in the fourth quarter, pending regulatory review.