Crypto News: Bitcoin Closes in on the Big 10k!

Some think Bitcoin will go to 50k USD before going even higher and others warn its a bubble that doesn't have long until it pops... Nobody disputes the fact that Bitcoin is now worth seven times an ounce of gold and has a market cap higher than IBM, McDonald’s and Disney – but analysts are still advising investors to tread with extreme caution.

Bitcoin has hit a record high after passing $9,000 (£6,700) and is close to reaching five figures as investors in the cryptocurrency shrug off warnings of a bubble. The cryptocurrency rose to an all-time high of $9,721 on Monday. It is now worth more than seven times an ounce of gold, which is seen as a haven in times of turmoil. In a remarkable rally, bitcoin started the year at $1,000 and smashed through $5,000 in October.

We are just days away from seeing history in the making as the first and original cryptocurrency, Bitcoin smashes the glass ceiling to become a 10k USD crypto asset. Its hard to believe that at the beginning of the year it could hardly command a price tag of $1000 and look where we are now!

Analysts said the decision by the Chicago Mercantile Exchange (CME) to launch bitcoin futures in December had fuelled buying, but also warned of the dangers of a speculative bubble building. The digital currency has gained more than 50% since the CME announced its decision on 31 October.

It seems the CME's recent decision to launch bitcoin futures has done a lot for the cryptocurrency as it brings a huge new flock of mainstream investors in addition to large financial operations like hedge funds...

Warning of looming pain for bitcoin buyers, Wilson added: “But for traditionalists, it’s hard to fathom. Rather than a commodity or currency, bitcoin is like owning stock in a company that will only ever issue 21m shares and never pay a penny in dividends.

It's funny because from a cryptocurrency investor's point of view, Bitcoin is far more desire due to its decentralized and finite nature. Stocks can split, greenbacks can be printed in endless supply but with Bitcoin there will only ever be 21 million and it can be exchanged as a substitute for traditional money. Who cares about a dividend, don't you think everyone will be banging down the door to buy a piece of this revolutionary new financial platform?

The price has been volatile. Bitcoin plunged below $3,000 in mid-September after the Chinese authorities announced a crackdown. To help rein in some of that volatility, CME will not allow the trading of bitcoin futures at prices 20% above or below the settlement price from the previous day.

It used to be that futures trading was only for stocks but they've allowed Bitcoin into their little trading club. What's next? Possibly Ethereum? Bitcoin Cash may be next on the agenda but who knows...

When will BTC hit 10k? Any ideas?

Thanks for reading!

Source:

Bitcoin nears $10,000 mark as hedge funds plough in - The Guardian