Published: Thu, October 12, 2017
Economy | By Annette Adams

Bitcoin reaches new high as it approaches $5300

Bitcoin reaches new high as it approaches $5300

Neil Wilson, senior market analyst at ETX Capital, said investors in bitcoin are also buoyed by news that U.S. banking giant Goldman Sachs plans to trade the cryptocurrency.

This week, Russian Federation has announced the regulation of digital currencies, as President Vladimir Putin said the instrument has significant financial risks.

The price of the controversial crytpo-currency soared by more than $500 on Thursday to more than $5,330, bringing it to a new all-time high. Nettles said interest had been much higher than anticipated and has come from banks, hedge funds and brokers.

Daniel Murray, global head of research at EFG Asset Management, noted that in 2013, bitcoin soared twelvefold in just four months but within a month had lost a third of its value and four months after its peak had lost 60% of its value.

But that was not enough to put investors off, with bitcoin rallying around 10 per cent since then.

Bitcoin is the biggest and most popular cryptocurrency. As recently as December, bitcoin was trading at less than $1 000 dollars. Meanwhile, Citi's CFO said his bank is taking an "intense" look at cryptocurrencies and blockchain. But determining its value is hard. Its gradual price rise over the years has also made it a favorite among cryptocurrency speculators.

"Investors are seeing the lessons of history in the up-and-coming forks and hoping for an extra dividend", said Charles Hayter, co-founder of data analysis website Cryptocompare, adding that rumours on online forums that China could reopen exchanges could also be affecting the price.

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