Daily Management Review

Bitcoin’s rate is at the threshold of $ 3000


06/06/2017


On the night of Tuesday, June 6, the weighted average bitcoin rate was close to $ 3,000, while the aggregate market capitalization of the market surpassed the $ 100 billion mark.



BTC Keychain via flickr
BTC Keychain via flickr
Recall, not later than on Saturday, June 3, the price of bitcoin overcame the mark of $ 2500, but the ongoing bullish trend helped it to reach new historical heights.

This growth is explained by a particular activity in Asian markets, including the Japanese exchange bitFlyer, Korean bithumb and Chinese OKCoin Huobi. They are providing the main demand for bitcoin, due to which the price at these sites is significantly higher than on European and American exchanges.

The aggregate market capitalization of the crypto-currency market exceeded $ 100 billion for the first time (of which $ 46 billion accounted for bitcoin). The peak was $ 101.913 billion, which is very close to the capitalization of such giants as McDonalds ($ 106.4 billion) and Boeing ($ 108.8 billion).

Head of the hedge fund Global Investment Fund Advisors Bitcoin Daniel Masters in an interview with CNBC said that within 8-14 months bitcoin can reach the rate of $ 4 thousand. However, in the short term, the rate can rebound to a mark of $ 1,100 per coin. Masters refers to the experience of past peaks, which inevitably followed the fall of the bitcoin course.

The main driver of bitcoin growth is called legalization of crypto currency in Japan in April. The Japanese yen and the Korean won now account for 48.6% of all exchange transactions. In addition, investors are afraid of political uncertainty, CNBC reports.

American investor and founder of the brokerage company GoldSilver.com Mike Maloney believes that only crypto currency will be able to protect traders from the next financial crisis. "There was a stock crisis in 2000, stocks and real estate in 2008. Now stocks, bonds and real estate are in one of the biggest bubbles in history". When the bubble bursts, its consequences will be devastating for many, "writes Maloney. In his opinion, the crypto currency will help to survive the crisis. 

Analyst Kay Van-Petersen predicts the next growth of the crypto currency: $ 100 thousand for 10 years, which will mean an increase of 3483% from the current record high. Van Petersen believes that crypto-currencies in general - not just bitcoins - will account for 10% of the average volume of trade in fiat currency for 10 years. Now the average volume of foreign currency trading is just over $ 5 trillion, according to the Bank for International Settlements.

Earlier this week, the exchange rate of ethereum, a crypto-currency based on the blockchain protocol, reached a record high, rising to $ 250.41, CNBC reports. In early 2017, ethereum was trading at $ 8.52. Thus, for five months the virtual currency has risen in price by 2839%. At the beginning of the session on June 5, the ether was trading around $ 246.

One of the factors that influenced the new currency’s course was the meeting of the founder of the block-platform Vitalik Buterin with Russian President Vladimir Putin. The meeting took place in the fields of the St. Petersburg Economic Forum.

By the end of 2018, ethereum may surpass the capitalization of bitcoin, Bloomberg reported citing the words of Olaf Carlson-Wee, chief executive of the crypto-currency hedge fund Polychain Capital. The fund, launched in San Francisco, has already received investments from venture capital firms such as Andreessen Horowitz and Union Square Ventures. Carlson-Wee says: "We regard ethereum as a much richer, more complex ecosystem for developers, which is developing very, very quickly, and this has led to the fact that the price of it is growing much more aggressively than the price of bitcoin".

source: bloomberg.com






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