In one of the bigger news items in bitcoin’s relatively brief history leading CFD (Contract for Difference) broker IG Group recently announced that the company would be offering binary options contracts on the new virtual currency. IG Group account holders will now be able to speculate on the future rise and fall of the currency. This ground breaking option now offered by IG Group is the first of its kind and is due to expire at the end of May, allowing all current IG Group customers, and all prospective ones, enough to survey bitcoin’s short chart history and decide on the correct trade to make.
Bitcoin is a particularly attractive asset to trade on due to the volatility it has been experiencing lately. The entirely digital currency went from just shy of 14 dollars per bitcoin in January to an absolutely astonishing 266 dollars in April. Then as a result of hacking activity it crashed shortly thereafter to 105 dollar, and finally by April 16 it found itself trading as low as 50 dollars per bitcoin. Such activity is tailor made for binary options contracts; anybody on the right side of that downward trend would have been able to place a series of extremely profitable PUT trades. While opinion on the efficacy of bitcoin as an alternative currency vary wildly, one thing is certain, for speculators it is a dream come true and we anticipate a flurry of binary trading activity on bitcoin as more and more brokers rush to add the virtual currency to their platforms.
A recent press release from the company stated the following: “We are seeing a number of contributing factors come together for bitcoin to be the new hot topic. Firstly we’ve witnessed widespread uncertainty regarding the future of the Euro as the sovereign debt crisis in the region grows deeper. The haircut in Cyprus the other month was the last straw for many people as that was taking place we saw a massive uptrend, not only in interest for bitcoin, but in actual tangible investment in it. This saw the digital currency, which many had never heard of before Cyprus’s bailout negotiations, soar in value and experience the kind of volatility which makes it a very interesting prospect for traders. That’s where we come in. If anything the uncertainty surrounding many fiat currencies right now, not just the Euro, is playing right into bitcoin’s hand, we’ll see how the situation progresses, it is definitely a fascinating time to be trading.”