Bitcoin Just broke another record high trading above $4,600 for the first time yesterday. This broke through previous resistance levels that we saw in the coin recently.
It has shot by over $160 above its previous high and is now more than 4 times more valuable than the price of gold. What many people are indeed seeing that that the general public is of the perception that digital gold is the new store of wealth.
Price of Bitcoin on Bitstamp
The price of Bitcoin had first crossed over the $4,400 mark on the 15th of August but was stopped short of the resistance level of $4,500. This seemed to be a key psychological level for investors that forced many to liquidate holdings just prior to reaching it.
However, the break of this resistance level has led many industry insiders to conclude that the price is now well on its way to breach the $5,000 mark. These include TV hosts such as RT’s Max Keiser.
#Bitcoin will probably break $5,000 this week, starting a new media blitz, creating new wave of buyers who'll power price toward $10,000.
— BITCOIN MAXIMALIST (@maxkeiser) August 29, 2017
There are slightly more dire predictions such as that by Goldman Sachs analyst Sheba Jafari that claims that the price may reach $4,800 before it would crash to about the $2,200 level
Why there is such an increased demand for Bitcoin currently is not immediately certain. There are of course a lot of investors who are looking to diversify their traditional asset holdings as markets are less than certain.
It also appears as if the increase in Bitcoin is not happening in isolation. The price of the second largest Crypto Currency in terms of Marketcap, Ether, is also approaching all-time highs. Many traders are watching whether the price will break through previous resistance levels around the $390 mark.
There have also been really strong moves in a number of other altcoins such as Litecoin, Bitcoin Cash and Monero. Yet, much of this can also be attributed to the volume that is coming out of South Korean exchange listings.