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Strong demand for bitcoin continues to drive the price of the digital currency, which already reached more than $4,500 on the South Korean digital exchange.
Bitcoin surged to a new record high on Thursday, surpassing $2,700 barrier. The price of the cryptocurrency for the first time hit $2717.59, with its market cap exceeding $44 billion.
Towards the end of the day the value of bitcoin fell by more than $300 and is currently trading at $2512.22, according to CoinMarketCap. Overall, the digital currency increased by over 45% during the week and more than 180% this year.
Meantime, the price of bitcoin in South Korea escalated to more than $4,500, reaching an all-time high of $4,494. According to South Korean bitcoin exchange Coinone, the current price is worth 4,290,000 won ($3,830). The growth is attributed to the arbitrage opportunities existing in the local market. The low trading volume means there is a limited number of investors, what makes it easier for great investors to manipulate the market.
Nicola Duke, an analyst from Forex Analytix, told CNBC that the next mark of $2,800 could be the point at which bitcoin will start to decrease. She used Fibonacci retracement, a method of technical analysis which examines the peaks and troughs of previous “waves” or rallies and falls in the digital currency to predict the future price movements.
Bitcoin’s “wave two” lasted from 2013 till January 2015, when the price of the cryptocurrency rallied within several months before showing a sharp decline. After January 2015, the asset started its rally again.
Bitcoin, Duke said, is now in “wave three” and after reaching $2,800, will likely start to fall. According to the analyst, the price could hit $1,780 and could even plunge further to $1,470, demonstrating a 46.5% decline from Thursday’s high. Duke predicts that the fourth wave will last 61.8% of how long wave two lasted and the new rally after the correction will begin in January. The asset will then grow to $3,350 and $4,480 in 2018, she noted.
Some in the bitcoin community are rather optimistic about the future of the virtual currency. Speaking at the Consensus 2017 conference in New York, Xapo CEO Wences Casares suggested that the price of bitcoin will worth $1 million within ten years. Last month, Blockchain CEO Peter Smith predicted its value will reach $500,000 by 2030.
Earlier this week, BitPay launched its bitcoin visa debit card in 131 countries, allowing users to convert the digital currency into a wide range of fiat currencies like euro and pounds.