It might not be that surprising. But Bitcoin has, for the first time, traded above US$4,000. It’s not surprising due to its volatile nature. In 2017, bitcoin has hit numerous new record highs, with this morning’s milestone just the latest.
I wouldn’t be surprised if it hits a few more before 2017 is up.
For the year, the cryptocurrency is up more than 315%.
What caused bitcoin to rise above US$4,000?
It was largely thanks to Japanese buyers and heated global tensions. As reported by CNBC:
‘Bitcoin trade in Japanese yen accounted for nearly 46 percent of global trade volume, up from about a third a day ago, according to CryptoCompare. US-dollar bitcoin trade accounted for about 25 percent, according to CryptoCompare. Bitcoin trade in Chinese yuan and South Korean won accounted for about 12 percent each.
‘The surge picked up speed in the last week, mirroring gold’s climb amid a global selloff in stocks and bonds. Rising worries about North Korea’s nuclear threat have sent investors flocking to perceived safe-havens and alternative assets.’
It’s also worth mentioning the pick-up in interest for bitcoin. Not just from individual investors, but institutions with far deeper pockets.
‘This week, Fidelity launched a feature allowing customers to also view their Coinbase bitcoin holdings. The currency also got a boost from Goldman Sachs, which in a report released this week said it is harder for institutional investors to ignore cryptocurrencies like bitcoin.’
To learn more about this fast-paced crypto world, check out tech guru Sam Volkering’s report ‘How You Could Bank 10x Your Money From Bitcoin’.
Junior Analyst, Money Morning