by Umar Farooq
Only a few months ago the digital currency was priced at around $1,200. In the short time since the price has jumped to more than $1,400, according to the CoinDesk Bitcoin Price Index.
As CoinDesk noted, this is an “all-time high” for the cryptocurrency, which saw a big increase at the beginning of the year before falling off and then rebounding — with a vengeance.
The currency had dropped in March when the Winklevoss twins, entrepreneurs Tyler and Cameron, attempted to create an exchange-traded fund for Bitcoin. The SEC shut that down, and Bitcoin is clearly doing just fine.
“Bitcoin is trading at fresh all-time highs on Tuesday. The cryptocurrency hit a record $1,484.68 before paring its gains. Now, it’s trading up 4.2% at $1477.10 a coin as of 8:03 a.m. ET. Tuesday’s advance has the bitcoin on track for its 11th gain in the past 12 sessions, and marks a second straight day of record highs. Bitcoin’s latest streak comes after the US Securities and Exchange Commission announced last week that it will reconsider the Winklevoss ETF. A ruling will be announced no later than May 15. Back in March, the SEC rejected two bitcoin ETFs, saying it “is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”
Bitcoin gained 20% in the first week of 2017 before crashing 35% on fears China would crack down on trading. Since then, it has rallied 95% despite China restricting trade, the SEC rejecting two bitcoin ETFs, and threats from developers of creating a “hard fork” that would split the cryptocurrency in two.” Businessinsider
A spike in global trading volume came mostly from Japan, which recently authorized digital currencies as a legal payment method, and its bitFlyer bitcoin exchange. “The biggest driver right now is you’re starting to see institutional investors take a keen interest in the entire sector,” said Brian Kelly, founder of Brian Kelly Capital, as quoted by CNBC. The upsurge in the price of bitcoin is reportedly the latest sign of growing flows into the cryptocurrency. “I don’t think this is hot money. This is real money that’s going to sit around and build the new internet,” Kelly said.
Alex Sunnarborg, a CoinDesk research analyst, pointed to a spike in global trading volume, especially from Japan and its bitFlyer bitcoin exchange. There seems to be an increasing amount of capital flows into bitcoin from around the globe.
by Umar Farooq