Bitcoin Stumbles Near New High But $5k Still in Play Oct 11 2017 at 11:30 UTC by Omkar Godbole
12 October, 2017, 20:39
This morning Bitcoin shot past $5,000, and is now hovering around $5,300 - up almost 10% from yesterday.
The world's largest cryptocurrency rose as much as 7.4% and was trading 5.8% higher at $5 105 as of 9:59am in London, resuming gains after a one-day break.
However, investing in bitcoin remains risky, as it plunged to below $3,000 just in September after Chinese authorities shut down exchanges in the country. Majority of cryptocurrency transactions occur in the Bitcoin network. Since the start of 2017, the value of the cryptocurrency has increased by 500% this year.
This week, Russian Federation has announced the regulation of digital currencies, as President Vladimir Putin said the instrument has significant financial risks.
Reports have recently emerged stating that trading in the currency could resume but with increased regulation. The decline was fueled by a comment from JPMorgan & Chase CEO Jamie Dimon who called bitcoin a fraud good for drug dealers and murderers.
- Financial analysts warn of an impending price bubble.
Kenneth Rogoff, a professor of economics and public policy at Harvard University and a former International Monetary Fund chief economist, has predicted that the technology behind cryptocurrencies will thrive, but the price of bitcoin will collapse.
"Yet bitcoin was created to operate outside of the influence of governments and central banks and is doing exactly that".
But other factors have gotten traders excited: An Oct. 2 Wall Street Journalarticle reported that Goldman Sachs was considering opening a unit focused on bitcoin traders.