78010
Bitcoin at New Record High
Bitcoin at New Record High

Bitcoin at New Record High

Bitcoin at New Record High

Bitcoin blasted to another all-time high of almost $18,000 on the Bitstamp exchange on Friday, up 9% on the day, as warnings grew over the risks of investing in the highly volatile and speculative instrument.
The cryptocurrency’s staggering recent price rises—more than 1,700% since the start of the year—have driven worries that the market is a bubble that could burst in spectacular fashion, Reuters reported.
Bitcoin has climbed almost 80% so far in December alone, putting it on track for its best month in percentage terms since December 2013. On Friday it reached as high as $17,900 on the Luxembourg-based Bitstamp exchange.
While bitcoin has added another fifth to its value since Monday, trading has been slightly calmer than the wild price swings the market has seen in recent weeks, with volatility lower since the launch of bitcoin futures from CBOE Global Markets on Sunday.
Market-watchers said bitcoin’s price was being lifted by the launch of rival CME Group’s bitcoin futures contracts on Sunday.
“The hope is that futures signal the unlocking of institutional money into the digital arena and (that there will be) a rapid demand increase and ratification of the technology and its principles,” said Charles Hayter, founder of industry website Cryptocompare.
But outside of the crypto market, worries continue to grow about the amount of money piling into the space. A study by Anglia Ruskin University, Trinity College Dublin and Dublin City University released on Friday said bitcoin could pose a threat to the financial stability of traditional currencies and markets.
“Our evidence finds that the price of bitcoin has been artificially inflated by speculative investment, putting it in a bubble,” said Larisa Yarovaya, one of the report’s authors and a lecturer at Anglia Ruskin University. “Although bitcoin is not regulated by governments, it could still have a knock-on effect on traditional markets due to the interconnectedness of cryptocurrency markets with other financial assets.”
Others, however, say bitcoin’s total market size—around $300 billion—mean the impact of any future price collapse would not be large enough to have a knock-on effect on financial stability.
The BBC reported late on Thursday that the head of Britain’s Financial Conduct Authority, Andrew Bailey, had warned that bitcoin buyers should be prepared for the possibility that they could “lose all their money.”
Outages on some of the world’s biggest exchanges this week, which left millions of investors unable to access their funds during periods when trading volumes were high, have also fueled concerns about the fragility of the market’s infrastructure.

Short URL : https://goo.gl/6HzV8x
  1. https://goo.gl/UH6imz
  • https://goo.gl/rQLEzv
  • https://goo.gl/7vuWcm
  • https://goo.gl/yBPZZB
  • https://goo.gl/nBh1zt

You can also read ...

If both sides continue with tit-for-tat tariffs, the inflation would lead to further increases in interest rates  and give rise to disturbances in the currency markets.
The trade war between the US and China risks substantially...
Hong Kong’s GDP fell to 3.5% in the second quarter.
The outlook for Hong Kong’s economy is darkening as rising...
Norway to Surpass Sweden
Sweden’s economic prospects have dimmed in recent months and...
Crypto Market Struggles as Bitcoin Dips Below $6,000
Bitcoin touched below $6,000 and dozens of smaller digital...
China Growth Momentum Slows
China’s economy hit a mid-year rough patch as efforts to curb...
Many emerging market economies are better prepared now because they have a good international reserve position and they allow their exchange rates  to float more freely.
Italian economist Claudio Borio is considered an authority in...
Bankruptcy Soars Among Elderly in United States
A growing number of retirees in the US are filing for...
Saudi, UAE Non-Oil Sectors Remain Subdued
Saudi Arabia’s non-oil sector activity cooled off in July,...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus