Bitcoin’s price surge continues, hits US$9,707 before easing back

PETALING JAYA: The cryptocurrency Bitcoin, which is expected to end the year at US$10,000 (RM41,100), hit the US$9,707 mark yesterday, jumping more than 17% over the weekend, before losing some momentum to trade at US$9,534 as at press time.

FXTM global head of currency and market research Jameel Ahmad told SunBiz yesterday indications that Bitcoin is making further progress towards being accepted by the mainstream are primarily behind another surge in purchasing momentum for the cryptocurrency.

He noted that established hedge funds appear to be slowly becoming more favourable towards Bitcoin, which will diversify its reach away from individual retail investors.

Therefore, Jameel said, Bitcoin’s increasing acceptance into the mainstream will likely keep the momentum for the cryptocurrency on the buying side, meaning that the headline buying momentum is unlikely to change heading into next year.

In an analysis yesterday, FXTM chief market strategist Hussein Sayed said there is still more potential for this momentum trade to continue, given that number of participants has not exceeded 0.1% of the global population.

“Whether the price will be justified in the foreseeable future, depends on the adoption and the application of the new currency, but so far it still looks unstoppable,” he said.

Hussein said the cryptocurrency continued to gather pace over the weekend, rising above US$9,000, despite warnings of bubble being created in this new asset class.

From a fundamental perspective, he said, it is still almost impossible to give the cryptocurrency a fair value, but there has been a strong correlation between the Bitcoin’s price and the number of users opening new wallets.

“It is not just retail investors showing interest in the cryptocurrency, but many hedge funds have decided to join the party recently by including Bitcoins in their portfolios,” he added.