Bitcoin surges above $15,000 after climbing $2,000 in 12 hours




FILE PHOTO: A Bitcoin logo is displayed at the Bitcoin Center New York City in New York
FILE PHOTO: A Bitcoin logo is displayed at the Bitcoin Center New York City in New York's financial district  

By Jemima Kelly

LONDON (Reuters) - Bitcoin rocketed above $15,000 for the first time on Thursday, after adding more than $2,000 to its price in fewer than 12 hours.

Bitcoin, the world's biggest and best-known cryptocurrency, has seen a more than fifteenfold surge in its value since the start of the year.

It climbed to as high as $15,344 on the Luxembourg-based Bitstamp exchange around 1420 GMT, leaving it up more than 12 percent on the day, having traded just above $13,000 12 hours earlier .

Many market-watchers said the launch this weekend of bitcoin futures by CBOE, one of the world's biggest derivatives exchanges, was helping drive up the price on expectations it would draw more investors to the market.

"Futures trading will mean more demand...and is a form of ratification of the underlying tech - bitcoin and cryptocurrencies in general. They are now on the main stage," said Charles Hayter, founder of cryptocurrency data analysis firm Cryptocompare.

But some are warning that the launch of bitcoin futures, which will allow investors to take speculative "short" positions on the cryptoccurrency, as well as "long" positions, could cause even greater volatility.

"Aggressive traders, such as hedge funds and algorithm-driven funds, (will be able) to use this futures market to enter bitcoin trading with high levels of liquidity for aggressive short-selling and knock the prices really low," said Think Markets analyst Naeem Aslam.

"Players now have an incentive to be on the short side and make profits hedging against the upside."

The latest surge brought bitcoin's "market cap" - its price multiplied by the total number of bitcoins in circulation - to more than $260 billion, according to Coinmarketcap, a trade website. That, in theory, makes its market value higher than that of Visa.

The value of all cryptocurrencies now stands at around $415 billion, according to Coinmarketcap.

Bitcoin has more than tripled in price since the start of October, putting it on track for its best quarter since the end of 2013, when it surged above $1,000 for the first time.

It slumped in 2014, after Mt Gox, then the world's biggest bitcoin exchange, collapsed, saying it had been hacked and had 650,000 bitcoins stolen.

Watch original series, sports and more on go90.

(Reporting by Jemima Kelly, Editing by Abhinav Ramnarayan)

COMMENTS

More Related News

As bitcoin skyrockets, a top Facebook exec is joining the board of Coinbase, the cryptocurrency exchange (FB)
As bitcoin skyrockets, a top Facebook exec is joining the board of Coinbase, the cryptocurrency exchange (FB)

Facebook Messenger boss David Marcus is joining the board of bitcoin startup Coinbase. The move is a big win for Coinbase, which has the most popular app in the Apple's US App Store, thanks to the bitcoin craze. As interest in bitcoin soars, a senior Facebook executive is joining the board of Coinbase, a startup that helps consumers trade and store the cryptocurrency.

Coinbase halts ether and litecoin trading as cryptocurrency market approaches $500 billion
Coinbase halts ether and litecoin trading as cryptocurrency market approaches $500 billion

Coinbase, the popular cryptocurrency trading platform, blocked users Tuesday from buying red-hot litecoin and ether. On Tuesday, litecoin hit a record of $312, and ether soared to more than $600 for the first time. The cryptocurrency market is gunning for $500 billion.

Bitcoin Futures Are Wall Street's New Big Thing - And They're Up 26%
Bitcoin Futures Are Wall Street's New Big Thing - And They're Up 26%

Here's what all the fuss is about

Bitcoin futures rise as virtual currency hits major exchange
Bitcoin futures rise as virtual currency hits major exchange
  • World
  • 2017-12-11 03:37:47Z

The first-ever bitcoin future jumped after it began trading Sunday as the increasingly popular virtual currency made its debut on a major U.S. exchange. The futures contract that expires in January surged ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.