Bitcoin on record-setting spree, jumps 5% on day
- Bitcoin jumped more than 5% on Friday to fresh record highs of $41,530, reversing losses from earlier in the session.
- The world’s most popular digital currency slid to as low as $36,618.36 on Bitstamp exchange before bouncing back.
- Rival cryptocurrency ethereum rose 3% after sinking more than 10%.
- Increased demand from institutional, corporate, and more recently retail investors has powered bitcoin’s surge, attracted by the prospect of quick gains in a world of ultra-low yields and negative interest rates.
- Bitcoin has rallied nearly 1,000% since a low in March. It topped $30,000 for the first time on Jan. 2, after surpassing $20,000 on Dec. 16.
- Some market participants had warned of a correction after the $40,000 milestone was reached, but bitcoin was poised to register it’s 11th session of gains out of the last 12.
- Bank of America investment strategists on Friday said “violent” inflationary price action in markets helped bitcoin’s rally in the last two months.
- But it warned that the cryptocurrency “blows-the-doors-off prior bubbles”, such as the dotcom bubble in the late 1990s, China in the 2000s and gold in the 1970s.
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