Bitcoin is breaking all-time highs almost every week now, and the new future may see bitcoin at $10,000, some say even by the end of this week. The factors underlying this jump in price may be several.
As bitcoin is still considered a “bubble”, with every “re-branding” of the currency, and each upcoming split, the price, while correcting for a little while, skyrockets. The price graph of bitcoin is now and has always been a “hockey stick” one. It always goes up and the end to this is not to be seen.
According to Coindesk, bitcoin today hit $9,700, signalling a growth of $1,700 for just the past week. The value of bitcoin has grown tenfold.
Bitcoin split three times in recent times. Bitcoin Cash was released in August, then trading at around $200, while now the price is around $1,500.
Bitcoin Gold came into reality in October, 2017. The last cryptocurrency to be set is bitcoin diamond, which is not even available yet on all international exchanges, like in Japan. It trades at around $100, but expectations for the new “variation” of bitcoin are high.
According to Nikkei Asian Review, another split is underway, called super bitcoin. With so high expectations, it is no wonder that the price of the digital currency is going up and up every week.
What is more, the Chicago Mercantile Exchange plans to launch bitcoin futures next month, allowing investors to trade on the cryptocurrency’s outlook just as they would in stocks, crude oil or other assets, reported Nikkei Asian Review.
According to the report:
“Some worry that the market has become overextended. “Unlike shares in a company, bitcoin’s value isn’t underpinned by earnings, making it vulnerable to supply-and-demand movements,” said Naoyuki Iwashita, ex-head of the Bank of Japan’s financial technology center and now a professor at Kyoto University.”
Even if bitcoin surpasses the $10,000 level any time soon, the question of whether hedge funds, pension funds and other financial players will accept the “people’s currency” as an asset class is a different story.