Bitcoin hit a record high earlier today as renewed investor interest caused a upsurge for the price of cryptocurrencies but especially for Bitcoin. Hitting a high of $5,231.28, Bitcoin is now up 424% year on year.
Investors seem to be unaffected by negative news from regulators around the Bitcoin, despite China banning crytocurrency exchanges and initial coin offerings (ICOs) which previously served as a way for start-ups to raise money through the issue of tokens.
Coming back to China
Yet, reports coming from China have surfaced saying that trading might resume in China – the world’s second largest economy. Citing Xinhua, “Bitcoin trading will likely resume with more regulation”, possibly coming back with new licensing and regulations implemented in the exchange. This news has kept investors hopeful about the future of digital currency and its role in Chinese economy.
Elsewhere, a cold response
In contrast, Russia has commenced efforts to ban Bitcoin exchange websites, with Putin blaming digital currencies as a source to fund illegal activities. JPMorgan CEO Jamie Dixon has also recently called digital currencies a fraud. None of these comments have resulted in a decreased investor interest. Conversely, rising support from large institutions have bolstered the cryptocurrency, with Goldman Sachs exploring the feasibility of a Bitcoin trading operation. Former hedge fund manager Michael Novogratz sees potential in digital currency, taking out $500 million for investment as he predicts Bitcoin to hit $10,000 within the next 6 months.
Another event which might further push up prices is the anticipated fork which would see the launch of ‘Bitcoin Gold’. Some people will receive free money through the receiving of this ‘Bitcoin Gold’ simply because they stockpile and hold on to Bitcoins, fueling the bullish sentiment in the market.
Image Credit: Antana