This morning, Bitcoin surpassed $11,000.
The cryptocurrency, which has skyrocketed by more than 900 percent since the start of this year, is trading at $11,321.39, up 14.26%in the last 24 hours at 14:18 UTC. This is the quickest that bitcoin's price has covered the $1,000 distance. The cryptocurrency's trajectory from $9,000 to $11,000 took less than four trading days.
Among the top 10 most-traded cryptocurrencies, Dash registered the biggest gains, rising by 25% in the last 24 hours. The overall market capitalization for cryptocurrencies swelled to $345.8 billion, up from $307.7 billion a day ago. (See also: Bitcoin Tops $10,000; Marks 10-Fold Increase In 2017.)
Bitcoin’s phenomenal rise in 2017 has been due to a couple of factors, from a surge in media and online chatter to interest from Asian and institutional investors. (See also: Why Bitcoin Is The Ultimate Value Play.) For example, Japan and South Korea are among the top three trading venues for cryptocurrencies. In terms of trading volume, the Japanese yen accounts for approximately 61% of overall trading volume in bitcoin while the South Korean Won is responsible for 11 percent.
Hedge funds catering exclusively to the cryptocurrency space have also multiplied recently. Exchange powerhouse CME is expected to begin bitcoin futures trading towards the second week of December. (See also: CME To Launch Bitcoin Futures.) Similarly, CBOE has already released contract specifications relating to bitcoin futures for review.
Goldman Sachs Holdings Group Inc. (GS) and JPMorgan Chase Inc. (JPM) are reportedly considering offering bitcoin trading services to their clients. Governments have also begun implementing solutions using blockchain, the technology underlying bitcoin. (See also: JP Morgan May Not Rule Out Bitcoin After All).
While interest from institutions has driven bitcoin prices higher, some investors have already begun warning about a bitcoin bubble. Billionaire Michael Novogratz, who has invested roughly 10% of his fortune in cryptocurrencies, told audiences at a conference yesterday that bitcoin was the “biggest bubble” of our lifetime.
“This is a bubble and there is a lot of froth,” Novogratz said. Still, that froth doesn’t seem to have dissuaded Novogratz from predicting prices of $40,000 for the cryptocurrency by the end of 2018. (See also: Bitcoin Bulls And Bears Square Off In New York.)