LONDON (Reuters) – Bitcoin is being tested at 15-month highs on Monday, after a jump of more than 10% over the weekend, with analysts attributing the spike to a growing optimism about the adoption of cryptocurrencies, after Facebook announced the availability of the weighing Scale, digital currency.
FILE PHOTO: A Bitcoin logo is seen on a cryptocurrency ATM in Santa Monica, California, USA, on January 4, 2018. REUTERS/Lucy Nicholson/File Photo
The largest of the cryptocurrency hit $11,247.62 on the Bitstamp exchange late on Sunday, the highest since March of last year. Later, retired to, and were last up 0.7% at $10,917.
Facebook said last week that it was planning to launch a new cryptocurrency called the Scale, though, the announcement immediately sparked questions from regulators and politicians around the world.
Mati Greenspan, an analyst at eToro, said the bitcoin gains have underscored growing optimism among private investors is that Facebook’s plans were part of a larger trend of major companies to the adoption of cryptocurrencies.
“Traders continue to speculate as to the future involvement of the big players, like Facebook,” he said. “It is believed that the Scale will be to create a mass awareness of cryptocurrencies, and will serve as an entry point to the show.”
Traders cited geo-political factors, tensions in the Gulf region of the US-China trade war as well as the project of interest in the bitcoin, which has more than doubled in price since the end of March.
Some of the investors have looked at bitcoin and other cryptocurrencies as a hedge against a possible drop in the domestic currency, dealers said.
(Image: Bitcoin tests $11,000 – tmsnrt.rs/2Ft6UJU)
Cryptocurrency markets are opaque and it is difficult to determine the exact catalyst for the price movement. Between 2200 GMT on Friday and 0300 GMT, Saturday, only, of bitcoin has increased by more than 10%.
Thomas by Puech, of the Enigma of Securities, a London-based company, which specializes in larger-sized over-the-counter cryptocurrency offers”, said the growing tensions between the United States and Iran have had “gas” for bitcoin and other cryptocurrencies.
At the end of March, the bitcoin broke out of a residence on a limited price movement. It has since been increased by more than 160%, or an increase of the threat posed by the double-digit growth, price fluctuations, which have reminded some of the retail investor is fed by 2017 the bubble.
Bitcoin’s volatility has been a boon for the larger investors, such as hedge funds and other investors looking for a return as central banks around the world tend to have a lower rate of interest, said Puech.
Gold prices hovered near a six-year high on Monday, with the demand for the safe-haven metal, is strengthened by the dovish signals from central banks.
Bitcoin, accounting for over half of the cryptocurrency market have more than tripled in price because of the use of the lowest of the year in January.
Report by Tom Wilson; Editing by Tommy Wilkes and Mark Potter