Can ICE's Cryptocurrency Ambitions Spur Bitcon's Gains?

Bitcoin prospects for the end of 2018 keep tormenting every crypto-investor. At the same time, all assumptions and predictions, floating around the internet, give rather weak argument as to why Bitcoin should "surge" instead of "plunge". Such forecasts are a quite frequent phenomenon, and they often come from the owners of expensive cryptocurrency themselves. However, there are completely objective opinions, supported by fundamental data, which shouldn’t be ignored.

Last week, the word on the street was that some new player should appear in the cryptocurrency market. AMarkets’ analysts checked this information and came to the conclusion that Bitcom has finally got a decent fundamental reference point, which can reboot the market moods and bring back positive sentiment. In other words, Bitcoin is really on the verge of a new bullish rally. The reason for that is that Intercontinental Exchange (NYSE:ICE), the parent company of the New York Stock Exchange (NYSE), is reportedly planning to launch its own online trading platform to trade Bitcoins.

To recap, the Intercontinental Exchange - is the world's leading network of exchanges and clearing houses for financial and commodity markets in the US, Canada and Europe, as well as the world's largest operator of the derivatives market, where futures contracts for all types of underlying assets are traded: energy, currencies, precious metals. AMarkets’ experts believe that such apparent interest towards cryptocurrency is simply pragmatic: ICE is not willing to miss out on profits that are now accumulating in much less liquid platforms. Indeed, it’s hard to name a more attractive asset than a digital currency. The hype and mania around Bitcoin is driving it up and down, it’s incredibly volatile and traded 24 hours a day, 7 days a week.

It’s worth noting that ICE plans to enter the market with a very promising product - Bitcoin swap contracts. This instrument will be traded as a classic swap - a transaction with the simultaneous conclusion of counter-transaction on the reverse sale/purchase of the same asset after a certain period. The main feature of this contract is that it implies physically-settled swaps. Today Bitcoin futures traded on CME and CBOE exchanges don’t offer such a possibility.

The introduction of swap contracts may result in customer outflow from CME and CBOE Chicago-based exchanges. Besides, bitcoin will become available to a much more influential and wealthy audience of the ICE itself. Don’t forget about the US largest mutual funds, for which Bitcoin swaps can become a long-wished-for instrument to handle transactions with the cryptocurrency. Rumors are circulating, that the infrastructure base for new trading instruments will be ready by the fall of 2018. We recommend you make up your mind quicker, the BTC/USD is gradually creeping to $10K and we have all reasons to assume that the expectations alone may be enough for a staging recovery above $ 15 K.

Bitcoin Chart