Bitcoin hits new record, continues surge towards US$10,000
The price of Bitcoin, the controversial cryptocurrency, soared above US$9,000 a coin for the first time early Sunday morning.
By Sunday afternoon in New York the digital currency was trading at an all-time high of US$9,481 a coin, a more than US$1,000 increase from its price mid-day on Thursday. It gave up some of those gains later on, and by 5:56 pm New York time, Bitcoin was trading at US$9,343, and appeared, industry sources said, to be heading for US$10,000.
With this explosion in Bitcoin’s price, the market cap of other digital currencies also surged, to a record high of more than US$296bn, and is gradually moving towards US$300bn, according to published reports.
As reported here in recent months, the digital currency has experienced huge growth in 2017, alongside huge swings in volatility.
In September, for example, an announcement on the People’s Bank of China’s website that it was to ban the practice of raising funds for investment by selling new cryptocurrencies sent Bitcoin tumbling as much as 11.4%, “the most since July” Bloomberg said at the time, to around $4,350 per coin.
On 13 October, Coindesk.com, a New York-based online resource for cryptocurrency enthusiasts, crowed that Bitcoin had set a “new record” of $5,800. In total, since the beginning of the year when it was valued below US$800, it has increased tenfold.
Increased interest from institutions, individuals
Experts attribute the surge to a number of factors, including increased interest from institutional investors, planned release of bitcoin futures trading, and an increase in the number of people who make use of cryptocurrencies.
Mark Cuban, a billionaire American businessman, was quoted by the Business Insider news website as saying that Bitcoin’s price would continue to rise so long as bitcoin continues to function more as a collectible than an actual currency.
“The number of people opening up new accounts and buying bitcoin, even fractionally, is skyrocketing,” Cuban said. “Yet the people who have it as a true store of value have no reason to sell it as long as demand continues.”
To monitor the price of Bitcoin, many cryptocurrency enthusiasts check out Coindesk.com, which may be accessed by clicking here.