Chennai, November 30 2017: Roughly 12 hours after the Bitcoin smashed through the US $10,000 mark, the crypto-currency rose to $ 11,000 and traded at an all time high of $ 11,377.33 before plunging 18% US $9,292. At the time of reporting, Bitcoin was trading at US $10167.
Bitcoin’s rapid ascent has led to countless warnings that it has reached bubble territory. But the warnings have had little effect, with dozens of new crypto-hedge funds entering the market and retail investors piling in.
“As many seasoned traders know all too well, anything that rockets higher, tends to fall down faster when the time comes, and the time will come,” James Hughes, chief market analyst at FX broker AxiTrader, said.
London-based Blockchain.info, one of the biggest global bitcoin wallet-providers, told Reuters on Wednesday that it had added a record number of new users on Tuesday, with more than 100,000 customers signing up, taking the total number to more than 19 million.
Despite its mushrooming value, however, Bank of England Deputy Governor Jon Cunliffe said on Wednesday bitcoin was not big enough to pose a risk to the global economy.
Mike Novogratz, a former macro hedge fund manager at Fortress Investment Group, said in a Reuters Investment Summit this month that mainstream institutional investors were about six to eight months from adopting bitcoin.
Edited by Navaneeth Chitradurga, with inputs from other agencies