Thursday, October 12, 2017

Moves out of local currencies and fear of market crash drives Bitcoin to new all-time high of over $5200

Even with the lockdown of cryptocurrency ICO's and exchanges in China, and suggestions from the Russian central bank that Bitcoin should be outlawed, moves by investors into the crypto sphere has seen little decline.  And on Oct. 12, an impressive surge in buying has now pushed the Bitcoin price above $5200 and into a new all-time high.

Having bounced back from China's exchange closures and Dimon's damning, Bitcoin just broke above its pre-China ICO ban highs and traded above $5000 for the first time in history (even as Russia decided to block local access). There was no looking back as the cryptocurrency is now trading $5240 - a new record high. 
As Coindesk notes, prices had dropped to a low of $2,980 in mid September after China banned token sales and local cryptocurrency exchanges. However, in the subsequent days, BTC quickly regained poised, reportedly due to a pick-up in trading volumes in Japan, South Korea and other markets. The rotation of money out of the ether and ethereum-based coins and into bitcoin also helped the cryptocurrency scale new heights. 
Increased institutional interest seems to have played a role in boosting bitcoin prices. For example, a 'bitcoin desk' at Goldman Sachs would certainly be a game changer. News had hit the wires earlier this month that Goldman Sachs is considering a brand new operation which would be dedicated to bitcoin trading. 
Still, while skeptics continue to call bitcoin rally a bubble, the price action analysis indicates no serious trouble ahead for the cryptocurrency. - Zerohedge
Cryptocurrencies such as Bitcoin are offering an easy and mostly anonymous way for investors to move out of their local currencies and into a form of arbitrage that allows for the bypassing of sovereign capital controls,  And as this becomes more popular, the price will continue to rise in relation to devaluing currencies.


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