Bitcoin Soars Again, Nears $1,900 Mark

FinTech, Investing, News | May 18, 2017 By:

Bitcoin had a good day on Thursday, climbing to yet another all-time high in a month of all-time highs. As of mid-day, the single coin price was as high as $1,889 on some exchanges, just over three percent higher than the day before.

The bitcoin climb may have represented a partial rebalancing of portfolio assets. Although the US stock market recovered a bit from Wednesday’s brutal sell-off, the current political turmoil in Washington and international realms could cause some further cold feet among investors.

Other cryptocurrencies were up strongly mid-day, with ethereum’s ETH gaining a robust eight percent, hovering around the $94 mark; Litecoin also up, a nine-percent gainer to around $27; Dash was gaining six percent to just over $89; and Monero was over $30, also a nine percent gain.

Ripple’s XRP, which had an extraordinary run-up in the wake of an announcement that the company would freeze some assets to avoid flooding the market, fell back a bit, down almost seven percent.

Earlier this week, bitcoin had suffered a brief price retreat. It reached a floor of $1650 at one point on Monday before rebounding to today’s level. The previous all-time high of $1,839 achieved last week was dented by the worldwide ransomware attacks that occurred in the final days of the business week. The hacking group demanded ransom in bitcoins, thereby providing a dose of bad news about bitcoin security and perhaps prompting a rush to the exits by nervous new investors.

However, once those storm clouds passed, renewed confidence in cryptocurrency boosted most coins back up to new heights.

The rally floor for bitcoin’s all-time high was achieved on March 10, when it topped the $1,300 mark for the first time. A disappointing ruling by the US Securities and Exchange Commission on the Winklevoss twins’ bid to establish an exchange-traded fund briefly drove down the price to the mid-$900 range. Since then, it has increased an estimated 40 percent.

Increased worldwide trading, Japan’s legalization of bitcoin as a monetary unit, and improved outlooks from Russia and India toward easing regulations in those countries have been cited as reasons for the rally. In the US, the SEC said it will review its decision to deny the Winklevoss exchange-traded fund, also sparking some optimism. The deadline for comments to the SEC in support of its decision or against the denial was May 15.