LONDON (Reuters) – when the Bitcoin jumped to an 18-month high on Wednesday, up from analysts, it was caused by a jittery, traders are looking for security and alternative investments as well as the expectation that Facebook, the Scale was able to turn cryptocurrencies mainstream.
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 world’s largest cryptocurrency has risen sharply in value since the beginning of April, and was trading in the neighborhood of $13,000 on Wednesday. It is now up 240% since the beginning of the year, but it is still below its all-time high of nearly $ 20,000.
Investors have flooded back into the digital currency, after all in 2018. Bitcoin has risen for eight consecutive days in a row. And now, Facebook has said that it would have its own cryptocurrency, the Scale coin is at the end of June, by the year 2020.
Analysts say that Facebook’s announcement this month and has been renewed interest in the coins, while investors are looking for safety and security have also increased, to the Bitcoin is its price.
“It is clear, it seems to be taking advantage of some kind of cash flow, which is the gold left out in the cold,” said Michael Hewson, the chief market strategist at CMC Markets. “Did you get all of this stuff about the Balance of the hand, which is the renewal of interest in bitcoin. Crypto is back in fashion.”
He added, however, that the investors are buying bitcoin was speculative.
(Image: Bitcoin hits highest point in nearly 18 months, tmsnrt.rs/2FyOjMa)
With the major central banks to keep interest rates at near all-time lows, investors are on the look out for new ways to diversify their portfolios, including due to cryptocurrencies, analysts say.
Bitcoin CME futures volumes have increased in the past few days as investors are looking for ways to get their hands on the coin, through the derivatives market. Bitcoin last traded at $12,430 on the Bitstamp exchange after reaching a high of $12,935 earlier in the Asian session.
The cryptocurrency has rocketed by 150% since the beginning of May, along with big increases in other, smaller, digital currencies such as Ethereum’s ether, and the Ripple, the XRP.
Reporting Olga Cotaga; editing by Tommy Wilkes, Larry King