Investing.com – Bitcoin notched yet another record high on Friday, but gains were short lived after digital currency fell sharply as investors appear to take profit on the digital currency’s impressive rally so far this week ahead of the launch of Bitcoin futures due Sunday.
On the U.S.-based Bitfinex exchange, bitcoin fell to $14,693, down $1952.0, or 11.76% after hitting an all-time high of $17,171 earlier in the session. The popular digital currency market cap fell to $262.42 billion.
Bitcoin’s impressive 70% rally this week culminated in sharp reversal as investors appeared to take profit on the digital currency ahead of the launch of bitcoin futures on Sunday.
Cboe Global Markets said earlier this week it will start trading bitcoin futures on Dec. 10, after receiving the green light last week from US futures regulator Commodity Futures Trading Commission (CFTC). The news comes after CME Group announced last week that it would launch bitcoin futures on Dec. 18.
The launch of futures trading would allow traders to place bearish bets on bitcoin, which could pressure the price of digital currency. Some market participants believe, however, that the launch of futures paves the way for bitcoin to become an established asset class, which would spur institutional demand.
Other cryptocurrencies shrugged off bitcoin's move lower as bitcoin cash rose 12.42% to $1,385, while bitcoin gold rose 10.49% to $237.
Ethereum, the second largest cryptocurrency by market cap, rose 7.56% to $446.40.