Bitcoin may not be dead after all.
The original crypto coin surged past $10,000 CAD this week, its highest level since July. While still less than half the value of its 2017 peak, the coin appears to have stabilized.
For most, there is no explanation that can fully explain the sudden job, although many have pointed to the ongoing trade-war between China and the United States as a possible factor. With the trade-war scenario, global traders, the Chinese elite, or both, are converting their wealth into bitcoin in hopes that the value will hold out for a more extended period.
Outside of the trade-war scenari,o institutional investors joining the market could also be an important variable.
For example, the CME Group, a Chicago-based options and futures exchange operator, had a record day on Monday for bitcoin futures, a product only available to institutions, not individuals.
“Yesterday, the bitcoin futures at the CME Group reached an all-time high of 33,677 contracts,” Mati Greenspan, an analyst at trading platform eToro, said in an email on Tuesday. “Each contract is worth 5 coins, so that’s an equivalent of 167,385 BTC. If we assume an average price of $7,500 per coin, that’s a total volume of $1.26bn, the highest ever recorded by far.”
Steven Quirk, executive vice president at TD Ameritrade, told the audience at a 2019 conference that 60,000 clients have called or emailed because they are interested in trading futures products tethered to digital assets.
On the direct investment front, David Thomas, of London-based cryptocurrency broker GlobalBlock, said the coin passing $US6000 ($8000 CAD) may have fuelled interest among investors.
Sustained growth or another bust?
In one month, the price for Bitcoin has surged by over 67.5 percent, and it’s continuing to grow.
With so much gain, one question becomes key, can this growth be sustained?
What do you think about rising Bitcoin prices? Join the conversation by commenting below!