Following this correction there should be one more new high before a much bigger correction ( Suspecting back to the late $2900 zone )
A firm break below $5700 will void this outlook.
1) None of the Alt Tokens participated in the BTC rally. In fact all are below their all time highs
2) The excitement rally comes at the late stages of a trend - very typical of a 5th wave extension in fast moving markets.
* Should this not be the top, we will revisit our alternative theory of a much larger pattern in play. Will post a chart of this in the next few days.
For your interest -
By Justin Spittler, editor
Bitcoin just went mainstream.
I’m not saying this because teachers, plumbers, and librarians are getting filthy rich off bitcoin…or because cryptos are the biggest story in the investing world.
I’m saying this because the CME Group just made a historic decision.
The CME Group runs the world’s largest options and futures exchange. On Tuesday, it said that it will introduce its first-ever bitcoin futures contract.
This contract will track the price of bitcoin. And the CME Group plans to introduce it by the end of the year.
• The price of bitcoin surged 19% since this story…
It’s now trading seven times higher than where it was at the start of the year.
But it should head much, much higher.
The market for bitcoin could even soon triple in size because of this historic decision.
I’ll show you why in today’s essay. I’ll also show you how to get in front of this coming stampede.
But you first need to understand something important.
• The “smart money” barely owns any bitcoin…
This refers to institutional investors, which includes hedge funds, money managers, and sovereign wealth funds.
You might find this hard to believe. After all, institutional investors are usually the first to invest in groundbreaking technologies.
So, why don’t they own any bitcoin?
Simple. They can’t.
• You see, many institutional investors manage billions of dollars…
Some manage trillions.
When you oversee that much money, the stakes are high. So, these firms must hedge their bets when they make big trades.
There are many ways to do this. But the most common way is with futures contracts.
Now, the actual mechanics of hedging with futures are complicated. But they basically allow big institutional investors to protect themselves against adverse price movements.
In other words, they act like insurance if a big trade goes against you.
Up until now, big institutional investors haven’t been able to do this with bitcoin.
• LedgerX just introduced the world’s first bitcoin options contract…
LedgerX is the only federally regulated exchange and clearing house for digital currencies.
Two weeks ago, it held a “soft launch” of its bitcoin options product.
The exchange did $1 million in trades in the first week. The next week, it cleared $2 million.
That’s much better than people expected, but let’s be real. A couple million dollars is nothing for big institutional investors.
That’s why the CME Group’s announcement is such a game changer…
• The CME Group handles 3 billion contracts every year…
That adds up to about $1 quadrillion in volume.
In other words, it’s a much bigger deal than LedgerX.
So, why did the CME Group do this? Simple. Its clients are begging for a bitcoin product.
And the CME Group plans to give that to them by the end of the year.
When that happens, it will become the first major exchange to embrace bitcoin. But it won’t be the last…
• The Chicago Board Options Exchange (CBOE) has also embraced bitcoin…
The CBOE is the largest U.S. options exchange.
Like the CME Group, it also plans to launch its own bitcoin futures contract. And it could do so before the end of the year.
According to CBOE chief strategy officer John Deters, this product will make it much easier for many of its clients to speculate on bitcoin:
“People will be able to settle in cash,” Deters said. “So you can take a speculative position without touching bitcoin itself, which helps make it more attractive to all sorts of folks.”
I cannot overstate how important this is…
• Institutional investors manage about $30 trillion…
That’s about 250 times bigger than the entire bitcoin market.
Now, these big firms obviously aren’t going to move all their money into cryptos. But they won’t need to for bitcoin to skyrocket.
If they put just 1% of their money into bitcoin, that’s $300 billion. That would cause the bitcoin market to nearly triple in size.
But that’s not the only reason to be bullish on bitcoin today…
• The CME Group’s decision also paves the way for bitcoin ETFs…
But don’t just take my word for it.
ProShares and VanEck, two of the world’s biggest providers of exchange-traded funds (ETFs), are already working with the U.S. Securities and Exchange Commission (SEC) to introduce their own bitcoin ETFs.
If they succeed, it will become easier than ever to invest in bitcoin. And that will bring even more everyday investors into bitcoin.
• In short, the floodgates of the bitcoin market are about to rip open…
When they do, billions of dollars of pent-up demand will pour into what is still a relatively tiny market.
New Orleans, LA
November 3, 2017