Final Wednesday we reported that bitcoin had risen to $6,000 for the primary time this 12 months. On Monday, just five days later, bitcoin reached a brand new 2019 excessive of $eight,000. As I write this one bitcoin is value about $7,900.
In fact, bitcoin reached a lot greater ranges in late 2017 and early 2018. Bitcoin’s present worth just beneath $eight,000 is lower than half the all-time excessive of $19,500 set in December 2017. Bitcoin was final value a minimum of $eight,000 in July 2018.
As usually occurs, bitcoin’s rise is a part of a broader cryptocurrency growth. On Saturday, the value of ether—the foreign money of the Ethereum community—rose above $200 for the primary time in 2019. Different cryptocurrencies, together with Litecoin, Bitcoin Money, Monero, and Sprint are at or close to 2019 highs.
Nonetheless, bitcoin has outpaced all of those different cryptocurrencies in latest weeks. Bitcoin’s worth has doubled just since late March.
I wrote final week that there was no clear clarification for bitcoin’s sudden reputation with traders. That largely continues to be true immediately.
One latest piece of bullish information got here from Bakkt, a digital asset trade that shares a guardian firm with the New York Inventory Alternate. Bakkt introduced on Monday that it will start person acceptance testing for bitcoin futures contracts in July.
It’s a step towards better mainstream acceptance of the foreign money and will generate extra demand for bitcoin. However it’s exhausting to consider that this issue accounted for very a lot of the final week’s huge worth positive factors.
There are additionally some indicators of rising bitcoin purchases from massive institutional traders. Which may be contributing to bitcoin’s worth rise, however it’s not clear why these patrons are out of the blue interested by bitcoin.
Whereas bitcoin’s worth has been rising at a speedy tempo in latest days, it has but to attain the fever pitch of late 2017. In a single 48-hour interval days earlier than the December 2017 peak, Bitcoin rose from $12,000 to $15,000 in lower than 48 hours. A couple of days later, bitcoin hit its all-time document worth of $19,500, then crashed—the beginning of a year-long stoop that introduced the value beneath $four,000 by December 2018.