Summary:

• Bitcoin (BTCUSD on xStation5) saw an enigmatic decline overnight, the price quickly recovered though
• CME is set to launch Bitcoin futures on 18 December but CFTC warns investors to be wary of BTC anyway
• Vanguard founder Jack Bogle being an investing legend suggests to ’avoid Bitcoin like the plague’

The beginning to the new week on Bitcoin was remarkably chaotic as the price set its new high shy of $12,000 and marked a slump thereafter. Even as there were no straightforward reasons for such a fall one may attribute it to a Telegraph’s article claiming that UK ministers are launching a crackdown on the virtual currency Bitcoin amid growing concern it is being used to launder money and dodge tax. The Treasury has also unveiled its plans aimed at making trading on cryptocurrencies more transparent throughout forcing traders to disclose their identities and report suspicious activity. The prime goal is to make Bitcoin and other cryptocurrencies alike less attractive to criminals and tax avoiders. It also worth mentioning that a total value of Bitcoin stands at 145 billion GBP according to the Treasury and therefore it’s so relevant to begin regulating this market to bring it in line with rules on anti-money laundering and counter-terrorism financial legislation. Any new changes might be implemented as soon as the next year according to John Mann, a member of the Treasury select committee, who added that he expected to hold an inquiry into the need for better regulation of Bitcoin and other alternative virtual currencies in 2018.

After a quick slump sparked possibly by the Telegraph’s article (marked by a purple arrow) the Bitcoin price erased some of those losses. As a result one may assume that buyers could take a stab at breaking $12,000 before long. Source: xStation5

Before Bitcoin neared $12,000 we got quite upbeat report from CME on Friday afternoon as the world’s largest futures exchange announced that it completed self-certification with the Commodity Futures Trading Commission (CFTC) to launch its Bitcoin futures on 18 December. Furthermore, CFTC Chairman said in a statement that Bitcoin is a commodity unlike any the Commission had dealt with in the past. Moreover, the report said that CME and two other exchanges agreed to significant enhancements in order to protect customers and maintain orderly markets. On top of that, CBOE said in a separate release that it has filed a product certification with the CFTC to be able to offer Bitcoin futures. The certification will be vetted and reviewed and when the process is completed, a launch date will be announced shortly. Let’s also add that NASDAQ also maps out to launch Bitcoin futures as early as the second quarter of the next year.

After numerous tests of a short-term demand zone, sellers on Ethereum (ETHUSD) seem to concede defeat and once buyers take control on the market they might be capable of going towards $500. Source: xStation5

At last, it’s worth familiarizing itself with an opinion on Bitcoin expressed by John Bogle, a founder of Vanguard Group (an American investment management company having more than $4.5 trillion under management), who said to avoid Bitcoin like the plague. He also criticized the cryptocurrency for having no underlying rate of return alluding to this issue saying that bonds have an interest coupon, stocks have earnings and dividends. Bogle concluded that ’there is nothing to support Bitcoin except the hope that you will sell it to someone for more than you paid for it.’