Bitcoin hits new record high, bubble suspected
1 December, 2017
Bitcoin cryptocurrency soared to new record high last Monday just a few percent away from $10,000, after gaining more than a fifth in value over the past three days alone, news wires reported. The digital currency has seen a tenfold increase in its value since the start of the year, and has more than doubled in value since the beginning of October, lifted by the prospect of crossing over into the financial mainstream, amid a flurry of crypto hedge fund launches.
Bitcoin's price has been helped in recent months by the announcement that the world's biggest derivatives exchange operator CME Group would start offering Bitcoin futures. So far, institutional investors have largely stayed away from the market, viewing it as too volatile, too risky and too complex to invest other people's money into.
However, according to analysts, Bitcoin's rocket rise could soon prove to be a bubble, as the market price has hugely overlapped the price of number of coins effectively released at the market.