Bitcoin hits record highs on buoyant buying
All aboard the Bitcoin rocket ship!
Bitcoin hit a new all-time high today as it popped through the $5000 level, rallying all the way up to $5388 on relentless buying. With non resistance above it’s previous high of $5013, there was no stopping the world’s largest cryptocurrency.
BTC is up over 19% this week, and over 24% this month alone. This is a sharp reversal of September’s trend, which saw Bitcoin fall all the way down to $2980. It’s likely that we will see that low almost doubled by the end of the week if today’s momentum is anything to go by.
Why the rally?
Market commentators don’t really have a specific reason as to why BTC has rallied so hard this week. There’s been some pickup in volume since Japan “legitimised” cryptocurrencies, which turned sentiment after China did the opposite. We’ve also seen a number of ETF’s submitted to the SEC, which attempt to create an exchange traded product who’s underlying is a BTC, ETH or a combination. These ETF’s haven’t had too much success, yet.
That could change after Goldman Sachs was reported to be considering a crypto trading operation. Having the world’s most prestigious investment bank put forward an ETF or exchange traded product could change the SEC’s mind on the matter. There’s also been a number of crypto hedge funds pop up, but we are still a long way from the behemoth pension funds from getting involved.
This blog has mentioned, numerous times, the structural risks associated with crypto’s. They’re still around, but there is a growing acceptance amongst mainstream finance that it’s here to stay. There is still a very dark underworld, especially with Alt-coins, which can essential be created out of thin air with nothing stopping the “company” from taking your money. But…and importantly, currencies like BTC and Ethereum are getting traction.
It’s still the wild west of finance, but times are moving fast.