Bitcoin Price Crosses $5000 To Reach An All-Time High

Andrew Cummings
October 12, 2017

Throughout the year, fluctuations in Bitcoin's price had been quite extreme, most notably diving below $3,000 in September after the Chinese government ordered cryptocurrency exchanges to stop trading as concerns that increased levels of consumers joining the market would hurt financial markets elsewhere.

That said, Goldman Sachs is reportedly considering offering bitcoin trading and even China is considering easing restrictions of the cryptocurrency.

But the main factor could simply be demand from investors wanting "in" on a market that has provided gains exceeding those of any other currency in every year bar one since 2010. On the one hand, China is closing Bitcoin trading in the country, Russian Federation is planning to implement a ban on the access to Bitcoin exchange websites in the country.

"The interest really stems from the media hype", he added.

On Tuesday, Vladimir Putin called for regulations on cryptocurrency, labeling it a "serious risk" used for illegal activity such as money laundering, tax evasion, and funding terrorism. Its market capitalization is 53 percent of the market capitalization of all cryptocurrencies. "So we expect some investors to be surprised by bitcoin bouncing back", said Iqbal Gandham, managing director at broker eToro UK, in a note on Thursday. He pledged to sack any JP Morgan trader investing in Bitcoin, but also admitted he had not been able to dissuade his daughter from investing.

Kenneth Rogoff, a professor of economics and public policy at Harvard University predicted that although Bitcoin's underlying technology would likely thrive, the cryptocurrency itself was en route for a big crash.

Other cryptocurrencies - whose prices tend to be highly correlated to bitcoin - also rallied. As recently as December, bitcoin was trading at less than $1 000 dollars.

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