The comeback of Bitcoin continues. The oldest and most well-known cryptocurrency has continued its strong rise and reached the $ 8,000 mark on Tuesday. The reason for the new momentum is already known.
The Bitstamp trading platform reached $ 8,167 in the peak. On Sunday, the Bitcoin price had temporarily risen to $ 7,585, the highest level since last August. For the first time since June 2018, the cryptocurrency cracked on Tuesday even the 8,000-dollar mark. So the climbing tour continues. Other digital currencies such as Ethereum or XRP also made some significant gains in the waters of Bitcoin.Market watchers spoke on Sunday about Bitcoin’s largest trading volume since the beginning of the year. In the past week alone, the price rose by more than $ 1,000. Since early May, Bitcoin has gained about 55 percent or $ 2,800 in value. Compared to Monday, the price rose by over 16 percent.
Target price $ 400,000?
Some experts warn again of the danger of rapid price increases, which could culminate in a bubble-like development as the end of 2017. Nevertheless, the cryptophans are still euphoric. And so the declared price targets shoot up again.
Mark Yusko, head of crypto-investment firm Morgan Creek Capital, said a few days ago that Bitcoin has the potential to grow to $ 400,000 in a decade. He compares the bitcoin with gold.”Gold has been hard money for 5,000 years, it has a total value of about $ 7.4 trillion, the best thing about Bitcoin is that it’s digital gold, it’s much easier to transport, it’s much easier to share, it has all these are the essential qualities that I think are better than gold, “says Yusko. However, despite the recent massive gains, the digital currency is still trading well below the record high reached at the end of 2017 at around $ 20,000.
Investors, watch out!
The volatility of cryptocurrencies remains high. Private investors should therefore be careful. At the end of May, Bitcoin was still greasy to less than $ 5,000. The sell-off was triggered by an injunction issued by the New York Attorney General’s Office against iFinex, which operates the crypto-exchange Bitfinex and controls the Internet currency Tether. The court banned the liquidation of dollar reserves underpinned by Tether.