Mubasher: The price of bitcoin is continuing to jump after passing the $10,000 and 11,000 marks in two days.
Yesterday, bitcoin passed $10,000, and hours later during today’s trade the cryptocurrency surpassed the level of $11,000, before retreating to around $10,880.
The CEO of CryptoCompare, Charles Hayter called breaching the $10,000 level a seminal moment for the cryptocurrency, noting that this level represents the closing of the second cycle in Bitcoin which has drawn the interest of institutional investors who have so far been constrained from trading by their remits, as quoted by Business Insider.
“This is starting to change as more sophisticated and regulated instruments are made available. This will lead to Bitcoins third cycle,” he added.
Another analyst believes the bitcoin bubble is going to get a lot bigger from here due to the global nature of this unique asset.
Many analysts have been anticipating such levels for months, with only few expecting it to happen this quickly.
It is worth noting that the bitcoin started from the price of 6 cents seven years ago, less than $1,000 at the beginning of the year.
Some analysts believe that the jump in prices will only continue with some expecting it to eventually hit $40,000 per coin.
The recent rushes in the value of bitcoin comes as more traditional investors are entering its market, as they are afraid to miss out on achieving such high profits in a very short period of time.
CNN Money indicated that according to research site BitInfoCharts, the vast majority of bitcoin accounts contain just 0.1 bitcoin, equivalent to about $1,000 or less, while only 3% of more than 20 million bitcoin accounts hold one bitcoin or more.
Investors should be able to start trading bitcoin futures via the Chicago Mercantile Exchange, which is expected to give the virtual currency more legitimacy among professional investors, the network added.
Meanwhile, Nasdaq is planning to launch a futures contract based on bitcoin in 2018, making it the third American exchange operator to plan derivatives contracts off of the digital currency, a source told Rueters on Wednesday.
Experts note that the appeal of bitcoin is increasing despite several warnings from central banks and experts of an asset bubble, as the digital currency is still rarely used to purchase actual goods or services, making it almost entirely a vehicle for speculation.
