Bitcoin Price Hits New All-Time High, is There a Limit?

    The global average bitcoin price across major markets including the US, Japan, South Korea, and Europe has surpassed $16,000, peaking at $16,422.

    Within the past 24 hours, the price of bitcoin has recorded an increase of nearly 30 percent, outperforming all of the top ten cryptocurrencies in the market, including Ethereum, Bitcoin Cash, and Litecoin.

    $10,000, the “Psychological Level” Passed, Anything is Possible?

    George Kikvadze, a highly regarded bitcoin investor and vice chairman at leading bitcoin mining firm Bitfury, stated that the $10,000 mark was the psychological level for the majority of investors and traders in the bitcoin market. Once the price of bitcoin breached $10,000, it skyrocketed to $15,000 within a period of several days, and according to Kikvadze, anything is possible beyond $10,000.

    “What a momentum. Buying up more at $13,000. As I said $10,000 psychological level was passed. Now anything is possible,” said Kikvadze.

    Over the next few weeks, especially through the launch dates of CBOE and CME’s bitcoin futures exchanges and the holidays, the price of bitcoin will likely continue to surge. As the two largest options exchange in the global finance market, the entrance of CBOE and CME into the bitcoin market is expected to result in the flow of tens of billions of dollars into bitcoin in the short-term.

    Peter Brandt, a prominent trader and author, emphasized that given that an interim target at $14,800 has already been met, the price of bitcoin will likely surge to $18,800 in the near future.

    Earlier this week, Brandt said that the price of bitcoin is expected to surpass $18,000 in 2018. In response, several investors and experts including John McAfee noted that the $18,000 mark will likely be surpassed by the year’s end. By the current price trend of bitcoin, unless a major price correction occurs, the price of bitcoin will be able to continue surging towards $18,000 throughout the upcoming weeks.

    CBOE’s Futures Launch on December 10

    With CBOE’s bitcoin futures exchange launch merely two days ahead, the demand for bitcoin from the traditional finance market and institutional investors is skyrocketing. Some of the market’s largest hedge funds including the $95 billion Man Group plan to invest in bitcoin upon the launch of a major bitcoin futures exchange.

    In consideration of the timeframe of CBOE and CME’s bitcoin futures exchange launches, along with NASDAQ’s commitment to launch a bitcoin futures exchange of its own in the first quarter of 2018, in terms of liquidity and market adoption, bitcoin is en route to sustaining its upward momentum and achieving new highs in the short to mid-term.

    A few months ago, the interim target of $10,000 by the year’s end by distinguished financial analyst and RT host Max Keiser seemed ambitious and unrealistic. However, the $10,000 milestone has already left the minds of most traders, and investors expect the price of bitcoin to break through $18,000 relatively soon.

    Featured image from Shutterstock.

    Last modified: May 20, 2020 9:17 PM UTC

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