Bitcoin surpasses US$11,000 as memories of popped bubble fade
Bitcoin traded above US$11,000 for the first time in 15 months, recouping more than half of the increase that captured the attention of mainstream investors before the cryptocurrency bubble burst last year.
“The bounce-back of Bitcoin has been fairly extraordinary,” said George Mcdonaugh, chief executive and co-founder of London-based blockchain and cryptocurrency investment firm KR1 Plc. “Money didn’t leave the asset behind, it just sat on the sidelines waiting to get back in.”
Bitcoin surged as high as US$11,251.21 on Monday, a 13-per-cent gain from late Friday that put it at the highest levels since March 2018. It was at US$10,896 as of late Monday.
The largest cryptocurrency had a furious run higher in late 2017 that culminated with a top above US$19,500, before an almost-as-relentless move downward over much of 2018. It languished around the US$3,300 to US$4,100 range for several months.
Bitcoin’s ride back accelerated in April. “The market has matured greatly since the last time Bitcoin crossed US$10,000,” said Matt Greenspan, a senior market analyst at etoro. “This run is far more justified given the current level of adoption.”
There are now signs of renewed mainstream interest in cryptocurrencies and the underlying blockchain technology, most prominently Facebook Inc.’s Libra coin. The social-media giant is working with a broad group of partners to develop the system.
The advent of Libra “is validating the crypto space and sending all the major digital coins higher,” said Edward Moya, chief market strategist at Oanda Corp. in New York.