After a brief standstill, the Bitcoin price is rapidly climbing once again. Shortly after reaching $8,000, the Bitcoin price continued to soar past $9,000 and is set to reach $10,000 soon.
Bitcoin is the world’s biggest cryptocurrency, both regarding trading volume and popularity. However, it has been a source of widespread controversy. While crypto enthusiasts proclaimed it as the next step in economics, several prominent bankers and experts cautioned that it is merely the next investment bubble. Despite the controversy, however, Bitcoin has flourished. In the last two weeks alone, the cryptocurrency grew by 40%. To compare Bitcoin with more traditional assets, the S&P 500 Index demonstrated a total return of 18% for the last year.
According to the head of marketing of the popular cryptocurrency trading platform Gatecoin ltd., Thomas Glucksmann, the latest significant price increase of Bitcoin is just the latest in a bull-like trajectory. Glucksmann noted that the most recent price increase was likely encouraged by trading platforms introducing Bitcoin futures, as well institutional investment money which is rapidly seeping into the market. Glucksmann speculated that Bitcoin’s latest price increase is likely to attract even more institutional investors.
However, Bitcoin has already been luring in institutional money into its market. According to Bespoke Investment Group LLC, the trading platform, Coinbase, has tripled its number of user accounts in the last year. The popular Bitcoin and Ethereum trading platform now boasts over 13 million active user accounts.
Bitcoin peaked at $9,735.51 just earlier today, which indicates a 17% increase in price, compared to the trading price on Friday afternoon.
Bitcoin’s fast and unprecedented growth has made it almost impossible for the most enthusiastic of predictions to keep up. Mike Novogratz, the notable hedge fund manager, predicted just last week that Bitcoin would reach $10,000 before the year’s end. Novogratz, gained attention recently when he announced that he would start a $500 million investment fund for the cryptocurrency market. Another investment expert, Thomas Lee, who is the head of research at Fundstrat, predicted Bitcoin to reach $11,500 by June 2018. Considering Bitcoin’s latest price surge, these predictions seem to pale in comparison.
A likely encouraging factor in Bitcoin’s price surge is CME Group’s plan to launch Bitcoin futures on its platform at the beginning of December. Surprisingly, even JPMorgan Chase & Co., have started speculating on whether they should perhaps make Bitcoin futures available on their platform. This is despite the fact that their CEO, Jamie Dimon, has previously denounced Bitcoin as being fraudulent.
Several prominent Wall Street figures and other influential financial leaders have expressed their skepticism regarding Bitcoin. However, Bitcoin’s continued price increases might force them to reconsider.
According to the crypto market analysis service, Coinmarketcap.com, the cryptocurrency market cap currently stands at $300 billion.