The ever-popular cryptocurrency, Bitcoin, is making waves yet again, closing in fast on the $10 thousand mark. This is the fifth time in three days it grew in value. The digital currency powered through from the beginning of this year and it doubled in value since October.
Ever since market company CME Group, announced that they would offer bitcoin futures, however, the currency soared to new heights almost without a hitch. The company said they will launch its futures contract by the end of this year although no specific date has been given.
Thomas Glucksmann, head of marketing at cryptocurrency exchange Gatecoin Ltd. attributed the recent spike in bitcoin’s value to “speculative trading” on Japanese exchanges as well as rising interest from institutional investors across the world. He believes this accumulative effect will most likely attract more investors which will establish bitcoin as a mainstay in cryptocurrency.
“It is more likely that the $10,000 psychological stratosphere will push more institutional investors into the mix,” Glucksmann notes.
According to market analysis firm, Bespoke Investment Group LLC, the number of accounts of Coinbase, has almost tripled to 13 million in the past year. Coinbase is one of the largest platforms for trading bitcoin and ethereum, bitcoin’s rival.
Bitcoin was up $9,747.49 on Monday and was at $9,350.33 as of 9:40 a.m. in London. The cryptocurrency defied expectations throughout the year, most notably among analysts who saw bitcoin as a blip on the ever-changing radar. Now, however, they find it hard to keep their predictions up to date.
Hedge fund manager Mike Novogratz, said last week that bitcoin will end the year at $10 thousand. The manager is starting a $500 million fund to invest in cryptocurrencies.
Market strategy and sector research firm, Fundstrat, has also changed their prediction with its head of research, Thomas Lee, having doubled his price target to $11.500 by the middle of next year.
The total market cap of digital currencies is reportedly $300 billion or more.
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