The comes after a massive sell-off last Sunday (11/12), when the price of the cryptocurrency fell to $5,500. This is to say that in the last 8 days, there was more than a 47% increase in bitcoin’s price.
This rise means one unit of the bitcoin is now valued at more than six times an ounce of gold, traditionally seen as a safe-haven investment.
There was a number of good news for bitcoin in the last couple days, that can help explaining these fluctuations, like favorable regulation in Japan. At the same time, CME Group announced plans to introduce bitcoin futures contract which would help institutional investors get involved with bitcoin. The company’s CEO confirmed that this futures product will be available the second week of December.
In the meantime, many commentators dislike the volatility of bitcoin: JPMorgan Chase CEO Jamie Dimon recently called it a “fraud” while UBS said it is a “speculative bubble”. Other analysts believe this is an unstoppable trend and bitcoin it could soar past $10,000 by the end of the year.
Nicholas Gregory, chief executive of the cryptocurrency business CommerceBlock, said: “The cryptocurrency’s momentum is being driven by a growing sense among speculators that the banking industry is firmly in its crosshairs”. “Increasingly, traders and speculators are looking at banks as Blockbuster Video and bitcoin as Netflix.”Trade now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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