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Bright Futures: Bitcoin Climbs on CME News, But Is $7000 in Sight?

Bitcoin has once again smashed expectations.

The largest cryptocurrency by total value hit record highs on CoinDesk's Bitcoin Price Index (BPI) this morning, with prices reaching $6,600 at 11:00 UTC. At the time of writing, the bitcoin-U.S. dollar (BTC/USD) exchange rate has dropped somewhat to $6,498, but that said, BTC is up 3.76 percent in the last 24 hours.

The move follows the news U.S.-based derivatives marketplace operator CME Group plans to offer bitcoin futures later this year, a notable announcement as it perhaps opens new doors for the world's yield-hungry institutional investors.

The hunt for return has intensified over the last couple of years, courtesy of record low interest rates across the developed world. So, if it comes to fruition, which largely depends upon U.S. regulators, CME's decision could end up creating a rival for equities.

As cited by Bloomberg, the listing on the CME offers the following benefits: firstly, liquidity could increase with high-frequency traders acting as market makers, and, secondly, traders would be able to hedge cash positions in the digital money

So far, the numbers speak for themselves: bitcoin is up more than 500 percent on a year-to-date basis, and price action analysis suggests a potential for a rally above $7,000.

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