Markets

Bitcoin returns: Cryptocurrency at 17-month high, trading at over $18k

Written by The ReReport
As seen in the Source link, written by dailytelegraph.com.au on 2019-06-27 14:46:10

Not too long ago, it seemed the Bitcoin bubble had well and truly burst — but yesterday, a spectacular surge saw it hit a 17-month high.In the early hours of this morning, Bitcoin was trading at almost $AU20,000, although it has dropped slightly to almost $AU19,000.The cryptocurrency’s rally marks an incredible turnaround following the “Bitcoin crash” of 2018, which saw its value plummet by as much as 70 per cent from its 2017 record high.According to CoinDesk, a news site specialising in Bitcoin and digital currencies, the Bitcoin Price Index is now trading at “the highest level seen since mid-January 2018”.It means Bitcoin has now “taken the cumulative month-to-date gains to 50 per cent”, and it is also tipped to record “double-digit gains for the third straight month”.It is also likely to end higher “for the fifth straight month — the longest monthly winning streak since April-June 2017”.It’s a far cry from 2018, when Bitcoin dropped in value by more than 70 per cent, down from a record high of almost $US20,000 in late 2017.Other cryptocurrencies also had their values slashed in that time.But last week, Facebook revealed its plans to launch a cryptocurrency called Libra in 2020 in association with a number of other high-profile companies, including Visa and Uber.The idea behind that digital token is to allow users to make everyday payments more cheaply, and to help people without access to bank accounts — such as those in developing or unstable nations.That announcement has been seen by many as a major economic shake-up, and has been widely credited with Bitcoin’s new surge.THE EXPERTFred Schebesta, who became one of the country’s youngest self-made millionaires at the age of 26 with the sale of his first business before founding comparison website finder.com.au, has also emerged as one of the country’s leading Bitcoin experts in recent years.Finder launched its cryptocurrency comparison offering in September 2017, and last February Mr Schebesta and co-founder Frank Restuccia also launched an over-the-counter (OTC) crypto exchange called HiveEx, followed by crypto bill-paying service HiveSpend.Mr Schebesta, who also hosts a regular crypto talk show, told news.com.au this week’s rally was proof Bitcoin was here to stay.“It is extremely exciting — this has happened five times before and it’s just happening again because Bitcoin is digital gold — it is exactly the same as gold, it’s just in digital form. It has been going for 10 years, and now it’s back again,” he said.He said Facebook’s Libra — with the backing of big-name companies — meant the adoption of Bitcoin was becoming “mainstream”.He said Bitcoin was already on the road to recovery before Facebook’s announcement, which just accelerated its rise.“That kind of news sent it skyrocketing. Bitcoin has overcome so many regulatory hurdles and so many problems and it’s just kept growing, so it’s not going anywhere,” he said.“This mainstream adoption changes everything — I didn’t see it happening this quickly, but that’s the thing about Bitcoin — it always surprises you. We’ve been trading with our clients the whole way through, and I think they’re going to be very, very happy.”media_cameraBitcoin is trading at almost $AU19,000. Picture: iStockMr Schebesta said while some punters had been “burnt” by Bitcoin dips in the past, many were now much savvier regarding its customary dips and gains.In the short term, Mr Schebesta predicted a “meteoric re-rise” of Bitcoin, followed by a “small correction” — although he expected it to continue to perform well.He also said the end of the financial year coupled with Facebook’s announcement and Bitcoin’s response would likely cause a flurry of new interest in cryptocurrency.“In every market, when there’s a big crash, what happens when it starts to go back up is a ‘disbelief stage’, and in this stage some people think (the rise) is fake, but unfortunately, they’re the people who miss out. We’re seeing right now institutional traders buying up Bitcoin, holding their positions and making a lot of money from this,” he said.“Everyone who stuck through the crypto winter should enjoy the efforts of their investment, because it was a very bleak winter. Bitcoin has died 350 times, but it is alive and well and this is just the beginning.”THE CRITICHowever, not everyone is convinced that Bitcoin’s meteoric rise is here to stay.One of those critics is Oanda senior market analyst Craig Erlam, who said it would be “naive” to expect Bitcoin to remain trading at the current high.“While I understand the excitement for the community that a company like Facebook, backed by other big names, has launched its own coin, this just feels a lot like last time and we all know what happened then,” Mr Erlam said, according to Bloomberg.$BTC Bitcoin is a no touch. This is a pump and dump. Be careful with your hard earned money. There is absolutely no intrinsic value in Bitcoin, it is not a gold replacement. pic.twitter.com/fAdyzkTLD7— Thomas Wealth (@thomas_wealth) June 27, 2019
Based on Fib retracement levels of the bear market we had since 20k, Bitcoin could run up to around $13,500 before a pullback. Doesn’t mean it won’t happen sooner. pic.twitter.com/YAspnaHsPh— Crypto𝕄𝔸𝕀ℕ𝔾 (@CryptoMaing) June 26, 2019
“Perhaps this time the drop off won’t be so bad as we are seeing more mainstream adoption but it may be naive to think that it can’t come crashing down again.”The news also caused a stir on Twitter, with some spruiking Bitcoin’s rise — and others urging caution.Continue the conversation @carey_alexis | alexis.carey@news.com.auOriginally published as Bitcoin’s back: Crypto hits 17-month high