Home / Business / Bitcoin reaches $ 13,000: the rally is back, in a big way

Bitcoin reaches $ 13,000: the rally is back, in a big way



  Bitcoin jumps 1000% this year

Bitcoin can not stop breaking records.

The virtual currency exceeded $ 1

3,000 for the first time on Wednesday, just a few hours after reaching $ 12,000.

Bitcoin has suffered a series of milestones in recent weeks despite warnings of a possible bubble. After starting the year below $ 1,000, it reached $ 8,000 for the first time in early November and exceeded $ 11,000 last week.

Related: What the hell is going on with bitcoin?

Much of the impressive rise has been driven by the expectation that large professional investors will start to market it. It has also been driven by mom and dad investors who do not want to miss their meteoric rise.

People are bidding their highest price even though the leading figures in finance and economics are telling them to be careful.

Nobel laureate Joseph Stiglitz said last week that bitcoin "should be banned". The criticism has also come from the likes of JPMorgan Chase ( JPM ) CEO Jamie Dimon and the legendary investor Warren Buffett.

Related: The Nobel Prize winner says that bitcoin "should be banned"

But some financial institutions are helping make bitcoin more popular.

Beginning next week, investors will be able to trade bitcoin futures through the Chicago Board Options Exchange, which is expected to increase the interests of hedge funds and large asset managers.

Futures allow traders to bet on the future price of assets such as currencies, metals and agricultural products.

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The Chicago Mercantile Exchange is set to move forward with a similar move later in December, while the Nasdaq in New York wants to list bitcoin futures from the middle of next year.

"The fact that CME, CBOE and Nasdaq now offer bitcoin products gives additional legitimacy," said Dave Chapman, CEO of Octagon Strategy of Hong Kong, a digital currency market.

Bitcoin is one of many cryptocurrencies, virtual "coins" that are "extracted" by computers that use complex algorithms.

Your recent promotion has not been easy. After exceeding $ 11,000 last week, it plummeted by more than $ 2,000, a clear reminder of its extreme volatility.

Related: Can something stop Bitcoin?

But the connoisseurs of the cryptocurrency industry do not flinch. They predict that bitcoin will skyrocket in the coming months.

Arthur Hayes, CEO of Bitmex in Hong Kong, an exchange to operate bitcoin-based financial instruments, told CNNMoney last week that he believes it could reach $ 50,000 next year.

Octagon & # 39; s Chapman is willing to go even further. He believes that bitcoin could reach $ 100,000 before the end of 2018 despite the growing number of rival cryptocurrencies that could compete for investor attention.

Bitcoin is "the most hardened and tested cryptocurrency in the battle at the moment," he said. "For now, it's unbeatable."

CNNMoney (Hong Kong) First publication December 6, 2017: 12:52 a.m. ET


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