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Bitcoin bursts through $5000 for the first time

12 October 2017

Ethereum tokens, the second largest digital currency, were up about 2%, and bitcoin cash - an alternative formed by early bitcoin developers gone rogue - had gained close to 3%. High Bitcoin transactions show the high levels of interests the public has on Bitcoin.

Bitcoin is the biggest and most popular cryptocurrency. In the last week alone, for instance, one bitcoin has ranged from Thursday's high of more than $5,200 to a low of about $4,200.

Jordan Hiscott, the chief trader at Ayondo Markets, said: "The returns are truly remarkable, especially given the recent ban on bitcoin trading in China, where demand had previously accounted for at least 10% of all global volumes".

This week, Russian Federation has announced the regulation of digital currencies, as President Vladimir Putin said the instrument has significant financial risks. And last month, JPMorgan CEO Jamie Dimon called the currency a "fraud" that will "blow up".

- Financial analysts warn of an impending price bubble.

But after dipping below US$3000 in mid-September, bitcoin has leapt in value by more than 75 per cent in four weeks.

According to data from SEMrush, a search engine data analytics company found the price had a 91% correlation with Google searches surrounding bitcoin, suggesting news surrounding the cryptocurrency increases the valuation of Bitcoin.

"It is folly to think that bitcoin will ever be allowed to supplant central-bank-issued money", he wrote in The Guardian.

"People are just wanting to be part of it", said Ryan Nettles, head of FX trading and market strategy at Swiss bank Swissquote, which launched bitcoin trading two months ago. "Individuals are already able to transact electronically using a plastic card".

Bitcoin bursts through $5000 for the first time