The price of Bitcoin topped
$29,000 on Thursday for the first time, with the digital currency almost
quadrupling in value this year amid heightened interest from investors big and
small alike
The price of Bitcoin topped
$29,000 on Thursday for the first time, with the digital currency almost
quadrupling in value this year amid heightened interest from investors big and
small alike.
The world's most popular cryptocurrency
touched $29,300 before pulling back, most recently down 0.67% at $28,774.36. It
has surged by nearly half since breaking $20,000 for the first time on Dec. 16.
Bitcoin's
potential for quick gains, as well as expectations it could become a mainstream
payment method, has attracted demand from larger U.S. investors, as well as
from traders who normally stick to equities.
"You can buy a stock
like Amazon, you can buy a stock like Apple, and you know what you got,"
said Dennis Dick, a proprietary trader at Bright Trading LLC. "Bitcoin you
really just have digits on a screen and you're really hoping that the guy
behind you sees it as being worth more than what you just paid for it, so it's
a purely speculative view," he said.
Still, intrigued by the
story behind bitcoin and the traction it was getting with institutional
investors, he put 1% of his net worth into a bitcoin fund around five weeks
ago, which has doubled in value since then, and he sold half on Thursday.
"When you double your
money within five weeks, if you sell half of it, I figure now you're playing
with the house's money," he said.
Recent gains have taken
bitcoin's market capitalization past $536 billion, according to industry
website CoinMarketCap https://coinmarketcap.com.
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