Svetlana Rud has been working as a freelance writer , with experience gained at several media outlets around the world.
Bitcoin price hits a new record high, currently trading above $5,800, continuing the rally seen yesterday amid renewed bullish sentiment from investors.
The bitcoin price hit an all-time high of $5840.30 in early trade on Friday, according to the CoinMarketCap’s Bitcoin Index. This surpassed yesterday’s record of $5,433.
The price of the cryptocurrency has rised step by stem since today morning. At this time total increase is around 9 percent over the last 24 hours. For the week, bitcoin is up over 30 percent.
The market capitalization of the most popular cryptocurrency — the total value of all bitcoin in circulation — hit $96.7 billion. Bitcoin is up over 480 percent year-to-date.
It should be added that price increase of other cryptocurrencies is also seen, according to the CoinMarketCap’s Bitcoin Index. For example, Ether and litecoin are up over 10 percent over the last 24 hours.
Bitcoin rapid growth within a week became unpredictable both for many rivals and believers of this cryptocurrency. Recently, many analysts, the head of world known companies and financial instituations announced negative statements concerning bitcoin.
Last month JPMorgan Chase CEO Jamie Dimon criticized bitcoin, named it a “fraud”, and threatened to fire any employee who would trade the cryptocurrency.
Yesterday Russian President Vladimir Putin wanted that cryptocurrency was risky equity and Russia’s central bank would block websites of exchanges offering cryptocurrency trading. “Buyers of cryptocurrencies could be involved in unlawful activities,” Vladimir Putin added.
However, some days ago Mike Novogratz, a legendary investor, former macro hedge fund manager at Fortress and current head of Galaxy Investment Partners, predicted that Bitcoin will jump to $10,000 in next six to ten months.
“I can hear the herd coming,” he said during an appearance after market hours Tuesday on CNBC’s “Fast Money.” He named bitcoin to digital gold. “Blockchain will change the way we live,” he said. “This is not going away. I’m pretty confident to say it’s going higher. …It would not surprise if in the next six to 10 months we’re over $10,000.”
This summer Mr. Novogratz predicted that the cryptocurrency market can reach $5 trillion by 2022. “The Nasdaq got to $5.4 trillion in 1999, why couldn’t it be as big? There’s so much human capital and real money being poured into the space and we’re at the takeoff point,” he noted.
In September the famous investor unveiled his plans to launch $500M Galaxy Digital Asset Fund which is believed to become the largest, but not the first one – according to data from NEXT, a financial technology analytics company, there are at least 75 such crypto funds in business.
“This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be,” he announced. But, in contrast with a majority of frightened investors, who see just volatility, he sees opportunity: “You can make a whole lot of money on the way up, and we plan on it. In a lot of ways, this is a market like any other market. You see the psychology of fear and greed in the charts the same way you’d see it in charts of the Indonesian rupiah or dollar-yen or Treasuries.”
Likely, whether negative or positive news concerning bitcoin drive up its demand and influence positive on bitcoin price. Increased demend can be explained by expectations of investors that are wanting ‘in’ on a market and obtain gains exceeding those of any other currency in a shot time.
All analysts, investors and head of states have one common opinion concerning cryprocurrency development. They underline the necessity of strict regulatory base within the global cryptocurrency exchange market that can really turn it into a major financial market. As for now, many markets including Japan, China, South Korea, Australia, the Philippines, Singapore and Hong Kong among others have introduced necessary regulation to encourage people use digital currencies.
Probably, it is one of the reasons for continuing bitcoin price growth. Accepted regulation policy concerning cryptocurrency market by the most developed countries reflects addoption of Bitcoin and other cryptocurrencies at the country level. It takes assurance to investors in further development of cryptocurrency market, continuing price growth and safety trading.
Another possible reason of such considerable bitcoin price increase is top position of Japan in total volume of the cryptocurrency traiding. According to Cryptocompare, Japan controls 59.77% of the global trading volume. Defenitely, ban of ICOs by Chinese government in September was the main reason of trading increase in Japan. Traders from China moved to neighboring cryptocurrency markets, most in Japan.
Moreover, cryptocurency policy of Japanese goverment could have only positive impact on Bitcoin price. The country was one of the first countries that declared bitcoin as a nationally legal currency.
In the beginning of October, Japan recognized eleven companies as registered cryptocurrency exchange operators granted Virtual Currency Exchange license to them.
Considerably growth of Bitcoin and other cryptocurrencies within recent years forces not only big investors but simple individuals to be involved in the cryptocurrency market. A man moved his family to a campsite after selling all his equity in order to buy cryptocurrency and grow rich after next “boom”.