Bitcoin hits $7000 setting another all time-time high

Bitcoin set another all-time high yesterday hitting $7,000 for the first time. The bullish movement of the cryptocurrency continued through the week after derivatives giant CME group announced that it planned to introduce bitcoin futures contracts (See: CME Group announces launch of Bitcoin futures ).

According CoinDesk, the virtual currency hit an all-time high of $7,355.35 at about 7:16 am ET before trading at $6,895.41. The sharp upward movement lifted the cryptocurrency more than 7 per cent in the day.

The surge in digital coin's value saw the total market value of all cryptocurrencies soar to $189 billion for the first time yesterday with bitcoin alone accounting for over $121 billion, according to data from industry website Coinmarketcap.

The CME Group, the world's largest derivatives operator said Tuesday that it would introduce bitcoin futures contracts. According to commentators, the product could bring more institutional investors into the market. Analysts attribute the price increase to the news.

CME added its bitcoin futures contract would be cash-settled on the basis of the CME CF Bitcoin Reference Rate (BRR), launched in November last year with London-based online trading platform Crypto Facilities.

"This is bitcoin crossing the divide from the wild west of finance to the mainstream," Charles Hayter, CEO of cryptocurrency comparison website Crypto Compare, told CNBC in an email Thursday.

''The move by such a well-known, established exchange throws open the doors for institutions to get into bitcoin,'' said analyst Arnaud Masset at Swissquote, a brokerage that offers bitcoin trading to retail clients, Reuters reported.

Meanwhile, Credit Suisse chief executive Tidjane Thiam called for caution about the booming cryptocurrency, saying the current interest in it could eventually subside.

''From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble,'' he said on yesterday Reuters reported.