Tuesday, January 26, 2021

Bitcoin surges past 12,000 USD

Bitcoin continues to rise exponentially in its value, defying the naysayers to smash through the US$12,000 ($17371) milestone for the first time.

The notoriously volatile cryptocurrency crossed the latest milestone in the early hours of Wednesday US time, according to research site CoinDesk, surging by nearly 5 percent in the space of four hours.

The Chicago Board Options Exchange will begin trading in bitcoin futures from December 11, allowing investors to bet on the rise or fall of the currency. The latest price spike brings bitcoin’s total rally since the beginning of the year to nearly 1200 percent.

“It appears that the momentum is unstoppable and we do think that the US$14,000 level could [be reached] before bitcoin futures start trading at the CBOE,” Think Markets chief analyst Naeem Aslam said in a note today.

“Principally, investors are thoughtful that when institutional money (hedge funds) will be involved, the chances are that the price would move higher. Large investment funds have not been able to take the piece of the pie yet and that would be their opportunity to get on board.”

Aslam said bitcoin futures trading on the major stock exchanges within a regulatory framework would provide more assurance for everyday investors and provide a “tailwind”.

But he warned that it was important to remember there were some hedge funds waiting to short bitcoin or bet against its fall.

“They are highly interested in this speculative market and cannot wait to take the froth off,” he said.

Bitcoin’s total market capitalization — the price multiplied by the number of coins in circulation — is now more than US$208 billion, according to Coinmarketcap, with the total market cap of all cryptocurrencies more than US$367b.

As bitcoin mania continues with seemingly no end in sight, debate rages as to whether it is the biggest bubble of all time or simply “digital gold” assuming its rightful valuation.

More News

Featured

Hours Before Republic Day, India’s DRDO Conducts Maiden Test Of New Akash Missile

Hours before the Republic Day celebrations, India’s Defence Research and Development Organisation (DRDO) has successfully conducted the maiden test launch of the Akash next-generation...

Chinese Journalist Calls Latest India-China Border Clash As ‘Fake News’; Indian Media Says PLA, Indian Troops Suffered Injuries

A senior Chinese journalist has rejected Indian media reports about a fresh clash between Indian Army and PLA troops at a border point in...

Did Iran’s Ayatollah Khamenei Threaten To ‘Take-Out’ Donald Trump Over Qasem Soleimani’s Assassination?

A Twitter account linked to Iran’s Supreme Leader Ayatollah Ali Khamenei was on Friday banned by the microblogging site for posting an image, in...

Russia To Supply Pantsir-S1 Air Defense System To Myanmar Amid Warming Ties With India, Japan

As India and Japan are getting closer to Myanmar militarily to counter China, the Southeast Asian nation has not forgotten its old ally Russia....

​China’s Growing Global Stature As Weapons Producer Threatens Russia’s Export Revenues

China overtook Russia to become the world's No. 2 arms producer between 2015 and 2019, according to data released by the Stockholm International Peace...