US$10,000 in sight for Bitcoin

NEW YORK: Bitcoin is showing no signs of slowing down, blowing past US$9,000 (RM37,000) less than a week after topping US$8,000 and now quickly closing in on five big figures.

The price of the largest cryptocurrency by market value is soaring as it gains greater mainstream attention despite warnings of a bubble in what not everyone agrees is an asset.

From Wall Street executives to venture capitalists, observers have been weighing in, with some more sceptical than others.

Bitcoin has risen more than 40 per cent over the past two weeks. By comparison, the S&P 500 Index has a total return of about 18 per cent this year.

“The weekend’s bitcoin price hike is just the continuation of a long-term bull run on the cryptocurrency, fuelled by the tsunami of speculative trading on Japanese exchanges and the entrance of institutional investors across the world,” said Thomas Glucksmann, marketing head at Gatecoin Ltd.

“It is more likely the US$10,000 (RM41,100) psychological stratosphere will push more institutional investors into the mix.”

The number of accounts at Coinbase, one of the largest platforms for trading bitcoin and rival ethereum, has almost tripled to 13 million in the past year.

Bitcoin climbed as high as a record US$9,735.51 yesterday.

Hedge fund manager Mike Novogratz said last week that bitcoin would end the year at US$10,000. Bloomberg