Bitcoin&rsquo,s skyrocketing price is showcasing no signs of slowing. It&rsquo,s presently trading for overheen $Four,100 a coin, having cracked the $Four,000 mark ter the early hours of Aug. 13. It has traded for spil high spil $Four,225, according to the CoinDesk Bitcoin Price Index. A prediction of $Five,000 vanaf bitcoin by years&rsquo, end, issued by Standpoint Research&rsquo,s Ronnie Moas te July, now doesn&rsquo,t seem so outlandish.
The co-author of a forthcoming book on valuing bitcoin and other cryptocurrencies, Chris Burniske, has pointed out that there&rsquo,s a strong correlation inbetween bitcoin&rsquo,s price and the vertoning of the search term &ldquo,bitcoin&rdquo, on Google, spil calculated by Google Trends. It&rsquo,s not a volmaakt indicator: Google Trends sometimes lags and sometimes leads bitcoin&rsquo, price.
Four/ The Three peaks te @Google Search trends were accompanied by Three of #bitcoin’s 6 price bubbles. pic.twitter.com/HmYYms55dk
There are a few theories spil to why bitcoin&rsquo,s price is so buoyant:
- It survived a contentious &ldquo,hard fork&rdquo, that witnessed the cryptocurrency split ter two, spawning a fresh digital currency called &ldquo,bitcoin contant.&rdquo, But while bitcoin&rsquo,s value has continued to climb, bitcoin metselspecie has floundered.
- It&rsquo,s acting spil a disaster hedge, much like gold, spil global geopolitical tensions are ratcheting up. The US and North Korea are presently engaged te spoken jousting, with both sides issuing threats.
- Institutional investors are lining up to get into the cryptocurrency markets. Forbes counted 15 fresh hedge funds poised to launch this year. Dozens of hedge funds are ter the pipeline, according to trade newsletter Hedge Fund Bedachtzaam(pdf). One playmate at an accounting rigid said the rente from clients has bot &ldquo,just crazy.&rdquo,
- Bitcoin resumes to go mainstream. Earlier this week mutual funds giant Fidelity released a feature that permits its customers to view their bitcoin, ethereum, or litecoin holdings from within their Fidelity account. Twitter and Square co-founder Jack Dorsey has also talked up bitcoin&rsquo,s potential spil the &ldquo,the next big unlock&rdquo, this week.
Bitcoin analyst Burniske has a word of warning for people piling into bitcoin: The correction could be severe.