The price of bitcoin soared to an all-time high of $8,000 on Sunday, staging a remarkable comeback after the digital cryptocurrency plunged as low as $5,500 just over a week ago. (more)
The price of bitcoin reached $8,101 on late Sunday, up from $7,776 at the beginning of the day, according to CoinDesk. The price fell slightly over the next few hours to close at $8,033 - the highest closing price ever for the digital cryptocurrency.
There was no clear reason for Sunday's rally, but it followed a remarkable comeback after the price fell as low as $5,500 on news that an update that could split bitcoin into two versions was suspended. The price returned to all-time highs over the past few days.
Despite this month's volatility, the price of bitcoin has risen sharply so far this year, going from $1,000 on January 1 to $5,000 on September 2. The increasing price has been driven by a number of factors, including increased interest in India, Venezuela, China, and Zimbabwe.
But regardless of the surging price, most mainstream investors are reluctant to participate, even though interest in the cryptocurrency is increasing. Most people at a Reuters investment summit said they believe the bitcoin market - which is now worth $134 billion - is a bubble that is destined to burst.
Nonetheless, financial market company CME Group has said it will launch bitcoin futures, a move that could further increase interest in the cryptocurrency. British hedge fund firm Man Group plans to add cryptocurrencies to its investment universe once CME launches bitcoin futures by the end of the year.
Bitcoins are intended to serve as an alternative for normal currencies and is not controlled by any country or central bank, making it an easy way for people to do business beyond the reach of government regulation. But the digital currency has suffered huge security breaches in the past and its exchange rate can rise or fall rapidly.
Published on November 19, 2017 - 7:55pm EST