Bitcoin has surged since the CME (NYSE:CME) announced that it would introduce a bitcoin futures contract, adding legitimacy to an investment vehicle that has some vocal opponents.
According to “The Charts That Matter Next Week” commentary compiled by Goldman Sachs technical analysts Sheba Jafari and Jack Abramowitz, Bitcoin has the potential to reach a least $7,941.
“The market has shown evidence of an impulsive rally since breaking above $6,044, and this break has indicated potential for an impulsive advance,” according to the trading desk commentary. The analysts added that a stall near $7,941 should be viewed as a corrective trend.
On Oct. 31, the CME announced that it intends to launch a bitcoin futures in the fourth quarter of 2017, pending regulatory approval. The CME launch is seen as a crucial step in to the cryptocurrency’s mainstream acceptance.
Commenting on the pending CME bitcoin futures contract Leo Melamed, chairman emeritus of CME Group, told Reuters in an interview on Tuesday: “That’s a very important step for bitcoin’s history... We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules.” Melamed added that he expects major investors to take part in bitcoin futures.
Bitcoin has both supporters, and vocal opponents, in high places. JPMorgan (NYSE:JPM) CEO Jamie Dimon called bitcoin a “fraud” while Peter Thiel, billionaire and PayPal (NASDAQ:PYPL) co-founder told FOX Business while he’s skeptical of most cryptocurrencies, bitcoin is “very underestimated.”