{"id":90819,"date":"2017-12-11T08:14:04","date_gmt":"2017-12-11T12:14:04","guid":{"rendered":"https:\/\/stateofthenation2012.com\/?p=90819"},"modified":"2017-12-11T08:17:26","modified_gmt":"2017-12-11T12:17:26","slug":"bitcoin-a-cryptocurrency-takes-the-whole-world-on-a-roller-coaster-ride-to-financial-hell","status":"publish","type":"post","link":"https:\/\/stateofthenation2012.com\/?p=90819","title":{"rendered":"<b>BITCOIN:<\/b> A Cryptocurrency Takes the Whole World on a Roller Coaster Ride to Financial Hell"},"content":{"rendered":"<h1>Bitcoin Futures Top $18,000, Soar 20% From Open &#8211; Halted for Second Time<\/h1>\n<p><!--more-->ZeroHedge.com<\/p>\n<p><u><strong>Update:<\/strong><\/u>\u00a0At 10:05pm ET,\u00a0 the CFE halted trading in Cboe Bitcoin Futures (XBT), in accordance with CFE Rule 1302(i)(ii) which defines the\u00a0<strong>threshold for the halt as a 20% surge.<\/strong>\u00a0XBT will re-open for trading approximately<strong>\u00a0five (5)minutes from the time of the halt.<\/strong><\/p>\n<p>Bitcoin Futures have topped $18,000 for the first time&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/12\/08\/20171210_limit.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/12\/08\/20171210_limit_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>It was reopened at 10:10pm ET.<\/p>\n<p>All of which is odd because Bob Pisani and the rest of the mainstream said that the opening of Bitcoin Futures would bring about the demise of the cryptocurrency due to the ability to short?<\/p>\n<p>*\u00a0 *\u00a0 *<\/p>\n<p><strong>Update:\u00a0<\/strong>At precisely 8:31pm ET, the CBOE instituted the first ever XBT trading halt, which lasted for two minutes according to a notice\u00a0<a href=\"http:\/\/www.cboe.com\/aboutcboe\/cboe-system-status#aDetails\">on Cboe\u2019s website<\/a>. XBT contracts have since resumed trading. As a reminder, the Cboe can halt trading for 2 minutes after 10% swings, and 5 minutes at 20%, an attempt to prevent wild swings.<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/12\/08\/20171210_xbt3.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/12\/08\/20171210_xbt3_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>Notably earlier in the evenig they exercised discretion and decided nto to halt the XBT trading as the first opening spike occurred&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/12\/08\/20171210_xbt2.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/12\/08\/20171210_xbt2_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>* * *<\/p>\n<p>The CBOE\u2019s website crashed within minutes of the CBOE open on Sunday \u2013 which also marked the launch of the first bitcoin futures to trade on a major exchange&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/CBOE%20crash.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/CBOE%20crash_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>&#8230; while the price of a bitcoin spiked 10% in five minutes as the new contract with the ticker XBT fluctuated wildly.<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/2017-12-10.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/2017-12-10_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>The embarrassing crash happened as the entire financial world was closely watching the first historic institutionalization of bitcoin:<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin futures start trading on Cboe, with price hitting as high as 16,660 before slipping below 16,000 <a href=\"https:\/\/t.co\/CLLZpypJUb\">https:\/\/t.co\/CLLZpypJUb<\/a> <a href=\"https:\/\/t.co\/zMFvThS8vc\">pic.twitter.com\/zMFvThS8vc<\/a><\/p>\n<p>&mdash; Bloomberg TV (@BloombergTV) <a href=\"https:\/\/twitter.com\/BloombergTV\/status\/940011241073909766?ref_src=twsrc%5Etfw\">December 11, 2017<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Shortly after the initial snafu, the CBOE tweeted that &#8220;visitors to cboe.com may find site is performing slower than usual and may at times be temporarily unavailable&#8221; due to heavy traffic adding that &#8220;all trading systems are operating normally.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Due to heavy traffic on our website, visitors to <a href=\"https:\/\/t.co\/jb3O722hoo\">https:\/\/t.co\/jb3O722hoo<\/a> may find that it is performing slower than usual and may at times be temporarily unavailable.  All trading systems are operating normally.<\/p>\n<p>&mdash; Cboe (@CBOE) <a href=\"https:\/\/twitter.com\/CBOE\/status\/940001581482815498?ref_src=twsrc%5Etfw\">December 10, 2017<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<div class=\"SandboxRoot env-bp-350\" data-twitter-event-id=\"1\">\n<div id=\"twitter-widget-1\" class=\"EmbeddedTweet EmbeddedTweet--edge js-clickToOpenTarget tweet-InformationCircle-widgetParent\" lang=\"en\" data-click-to-open-target=\"http:\/\/twitter.com\/CBOE\/status\/940001581482815498\" data-iframe-title=\"Twitter Tweet\" data-dt-full=\"%{hours12}:%{minutes} %{amPm} - %{day} %{month} %{year}\" data-dt-explicit-timestamp=\"6:33 PM - Dec 10, 2017\" data-dt-months=\"Jan|Feb|Mar|Apr|May|Jun|Jul|Aug|Sep|Oct|Nov|Dec\" data-dt-am=\"AM\" data-dt-pm=\"PM\" data-dt-now=\"now\" data-dt-s=\"s\" data-dt-m=\"m\" data-dt-h=\"h\" data-dt-second=\"second\" data-dt-seconds=\"seconds\" data-dt-minute=\"minute\" data-dt-minutes=\"minutes\" data-dt-hour=\"hour\" data-dt-hours=\"hours\" data-dt-abbr=\"%{number}%{symbol}\" data-dt-short=\"%{day} %{month}\" data-dt-long=\"%{day} %{month} %{year}\" data-scribe=\"page:tweet\" data-twitter-event-id=\"6\">\n<div class=\"EmbeddedTweet-tweet\">\n<blockquote class=\"Tweet h-entry js-tweetIdInfo subject expanded is-deciderHtmlWhitespace\" cite=\"http:\/\/twitter.com\/CBOE\/status\/940001581482815498\" data-tweet-id=\"940001581482815498\" data-scribe=\"section:subject\">\n<div class=\"Tweet-header u-cf\">\n<div class=\"Tweet-brand u-floatRight\"><\/div>\n<\/div>\n<\/blockquote>\n<\/div>\n<\/div>\n<div class=\"resize-sensor\">\n<div><\/div>\n<\/div>\n<\/div>\n<p>&#8220;Given the unprecedented interest in Bitcoin, it\u2019s vital we provide clients the trading tools to help them express their views and hedge their exposure,&#8221; said Ed Tilly, chairman and CEO of CBOE Global Markets, in a statement earlier this month. Trading in Bitcoin futures will be free through the end of December.<\/p>\n<p>Despite the surging interest in what was taking place on the CBOE, a little over an hour after the launch, some 555\u00a0<a href=\"http:\/\/twitter.com\/patrickrooney\/status\/940001613237964800\">XBT jan 2018 futures contracts had traded\u00a0<\/a>&#8211; equivalent of roughly $9 million notional&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/1%20hour%20in%20trading%20volume.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/1%20hour%20in%20trading%20volume_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>&#8230; and while futures market depth was virtually non-existant in early trading, the\u00a0<a href=\"http:\/\/twitter.com\/SPYJared\/status\/940010747765100545\">bid\/ask spread in the orderbook has since shrunk as depth increased,\u00a0<\/a>and is now &#8220;only&#8221; $50.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/xbt%20bid-ask_0.jpg\" alt=\"\" \/><\/p>\n<p>Indeed, as the tradestation tick chart below shows, as we expected, today&#8217;s launch is hardly euphoria bonanza some had expected.<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/XBT%20tradestation.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/XBT%20tradestation_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>Going further out on the curve, just one March 2018 contract has traded one hour into trading.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/xbt%20march_0.jpg\" alt=\"\" \/><\/p>\n<p>What is also notable, is that while at least in early trading, bitcoin futures appeared to be trading with a premium as much as $400 above cash, according to\u00a0<a href=\"http:\/\/twitter.com\/SPYJared\/status\/940012885757120512\">Jared Bilkre<\/a>, the XBT future was trading around fair value, defined by the Gemini auction price for bitcoin off which the futures are priced.<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/XBT%20fair%20value.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/XBT%20fair%20value_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>Still, it remains to be seen if the futures and spot prices will converge, with the spread still will in the hundreds of dollars while volatility refuses to ease.<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/2017-12-10%20%281%29.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2017\/11\/30\/2017-12-10%20%281%29_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>As a reminder, the CBOE plans to impose trading limits to curb volatility, halting trading for two minutes if prices rise or fall 10%, and a five-minute halt kicks in at 20%. Margins for Cboe bitcoin futures, which will be cleared by Options Clearing Corp., will be at 40% or higher.<\/p>\n<p>So far there have been no futures trading halts.<\/p>\n<p>Meanwhile, the price of spot Bitcoin surged immediately after the 6 p.m. open, climbing about 10%, or $1,500 on GDAX to over $16,200, before giving back much of the early gains&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user245717\/imageroot\/2017\/11\/20\/2017.12.10bitcoin.JPG\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user245717\/imageroot\/2017\/11\/20\/2017.12.10bitcoin_0.JPG\" alt=\"\" \/><\/a><\/p>\n<p>&#8230; as the excitement over this historic moment slowly fades away.<\/p>\n<p>And while for at least one person today&#8217;s first day of trading will never be forgotten, the first documented trade appears to have been a short.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I was the first one in the world to trade <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> futures.  Losing trade, but still FIRST! <a href=\"https:\/\/t.co\/osHCPgIOns\">pic.twitter.com\/osHCPgIOns<\/a><\/p>\n<p>&mdash; JVH (@Irishroundtable) <a href=\"https:\/\/twitter.com\/Irishroundtable\/status\/939994204264157184?ref_src=twsrc%5Etfw\">December 10, 2017<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<div class=\"SandboxRoot env-bp-350\" data-twitter-event-id=\"2\">\n<div id=\"twitter-widget-2\" class=\"EmbeddedTweet EmbeddedTweet--edge EmbeddedTweet--mediaForward media-forward js-clickToOpenTarget js-tweetIdInfo tweet-InformationCircle-widgetParent\" lang=\"en\" data-click-to-open-target=\"http:\/\/twitter.com\/Irishroundtable\/status\/939994204264157184\" data-iframe-title=\"Twitter Tweet\" data-dt-full=\"%{hours12}:%{minutes} %{amPm} - %{day} %{month} %{year}\" data-dt-explicit-timestamp=\"6:04 PM - Dec 10, 2017\" data-dt-months=\"Jan|Feb|Mar|Apr|May|Jun|Jul|Aug|Sep|Oct|Nov|Dec\" data-dt-am=\"AM\" data-dt-pm=\"PM\" data-dt-now=\"now\" data-dt-s=\"s\" data-dt-m=\"m\" data-dt-h=\"h\" data-dt-second=\"second\" data-dt-seconds=\"seconds\" data-dt-minute=\"minute\" data-dt-minutes=\"minutes\" data-dt-hour=\"hour\" data-dt-hours=\"hours\" data-dt-abbr=\"%{number}%{symbol}\" data-dt-short=\"%{day} %{month}\" data-dt-long=\"%{day} %{month} %{year}\" data-scribe=\"page:tweet\" data-tweet-id=\"939994204264157184\" data-twitter-event-id=\"4\"><\/div>\n<div class=\"resize-sensor\">\n<div class=\"resize-sensor-shrink\">\n<div>\u00a0<span style=\"font-size: 16px;\">To which there was a caveat&#8230;<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Of course the person I traded with was first too.  And they made money so they are prolly a better Twitter follow.<\/p>\n<p>&mdash; JVH (@Irishroundtable) <a href=\"https:\/\/twitter.com\/Irishroundtable\/status\/939999676698329088?ref_src=twsrc%5Etfw\">December 10, 2017<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>___<br \/>\n<a href=\"http:\/\/www.zerohedge.com\/news\/2017-12-10\/cboe-website-crashes-futures-trading-begins-bitcoin-price-squeezed-10-higher\">http:\/\/www.zerohedge.com\/news\/2017-12-10\/cboe-website-crashes-futures-trading-begins-bitcoin-price-squeezed-10-higher<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin Futures Top $18,000, Soar 20% From Open &#8211; Halted for Second Time<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-90819","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/90819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=90819"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/90819\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=90819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=90819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=90819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}