Bitcoin trades above $5000 for first time ever

Marco Green
October 12, 2017

The price of bitcoin, the world's best-known cryptocurrency, has smashed through $5,000 to a new all-time high.

Other cryptocurrencies gained value in that window of time as well.

This continuous rise of the Bitcoin and other cryptocurrencies comes even as analysts continue to issue warnings of a potential price bubble even though the digital currency has soared 750% in the past year. It is now worth four times more than an ounce of gold.

Bitcoin, a virtual currency created from computer code, was worth only a few U.S. cents was launched in 2009 by someone using the Japanese-sounding name Satoshi Nakamoto.

But by Thursday morning, bitcoin had recovered those losses and then some: It was trading above $5,200 per coin at 11:30 a.m. In September, JPMorgan Chase CEO Jamie Dimon described Bitcoin as a "fraud" and said he would fire anyone at the bank that traded it "in a second".

This week, Russian Federation has announced the regulation of digital currencies, as President Vladimir Putin said the instrument has significant financial risks. "So we expect some investors to be surprised by bitcoin bouncing back", said Iqbal Gandham, managing director at broker eToro UK, in a note on Thursday.

Neil Wilson, senior market analyst at ETX Capital, said investors in bitcoin are also buoyed by news that USA banking giant Goldman Sachs plans to trade the cryptocurrency.

Other reports by Click Lancashire

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