Bitcoin price surge: Finance boss reveals key element leading cryptocurrency rally

0
28


Bitcoin saw its highest price before December 2017 when the cryptocurrency hit just under $20,000. According to CoinDesk’s bitcoin price index, the world’s largest digital currency was at $11,841.67 at 13:40 on Thursday, dipping from its high of over $13,800 on Wednesday evening.

Jim Reid, who is global head of thematic research and credit strategy at Deutsche Bank, told CNBC: “I think it was interesting to see bitcoin up 180 percent since April.

“Some of that is because of the Libra project but I think, a combination of bitcoin and gold, there is an element to it where central banks are going to be less aggressive to alternative currencies as they start to become a little bit more attractive.”

Bitcoin price also increased after Facebook announced the launch of its own cryptocurrency called Libra to take on the global dominance of bitcoin.

Cryptocurrency expert Clem Chambers claimed Libra will “take cryptocurrency mainstream” and insisted it is a “massive bullish move” for BTC.

READ MORE: Bitcoin plunge: BTC loses $1,700 in just 15 minutes as Coinbase website crashes

Mr Chambers, who is the CEO of Online Blockchain plc., outlined the difference between the rally of 2017 and now. He said the current price increase is not simply due to people fearing they are missing out.

He told Express.co.uk: “The big difference is this is not a fomo rally. This is not everybody and the kitchen sink, this is not a cab driver trying to pile in on bitcoin because all their mates have made money and they haven’t.

“This is not a fomo rally.”

Mr Chambers dubbed the price surge as the “Trump safety rally”, adding: “A lot of this is coming out of Iran. So people in China are buying BTC because the trade war is on and there are more talks of ramifications.

Bitcoin plunged by more than $1,700 (£1,339) in 15 minutes after the Coinbase cryptocurrency exchange website appeared to crash.

The world’s largest cryptocurrency had been rocketing toward $14,000 (£11,029) earlier this week, but gains were wiped out last night when the Coinbase website showed an error message.

A notice on Coinbase read: “An error has occurred. We’ve been notified about the issue and are taking a look.” The website was up and running again by 4.30am BST.

After jumping to an 18-month high of above $13,700 (£10,792) on Tuesday, bitcoin dropped more than $1,700 in minutes and sank below $12,000 (£9,453), according to data on Market Watch.

LEAVE A REPLY

Please enter your comment!
Please enter your name here