Global stock indices are not the only asset class making new highs on a daily basis. Cryptocurrencies — specifically bitcoin — are soaring as well to fresh levels.
Despite two major set backs for bitcoin in 2017, the digital currency has soared nearly 45% from its year-to-date lows as Asian investors flock to the new-age currency.
Bitcoin prices are now trading at previously uncharted levels as the value of the cryptocurrency reached a high of $1,462 on CoinDesk on Tuesday morning in NYC.
In January the People’s Bank of China, the country’s central bank, launched a crackdown on bitcoin believing that citizens were using it to move wealth out of the country. Prices fell as low as $750 on January 12th, before recovering.
In March the cryptocurrency had a run up on the anticipation of the Securites and Exchange Commission would decide in favor of a bitcoin ETF driven by the Winklevoss brothers. Bitcoin prices reached a high at the time of $1,350, before the feds nixed the proposal sending prices falling to a low of $891 soon afterward.
Prices began to recover making their present move upward as Japan officially acknowledged the use of cryptocurrencies and passed legislation allowing retailers to accept payment in digital form.
Also Russia and India have also loosened restrictions on cryptocurrencies, leading to wider acceptance within their borders as both countries — India more so — struggle with their own internal currency crises.
The SEC announced last month that it would take a second look at a bitcoin ETF by reviewing its ruling in the Winklevoss brothers’ application. No timetable has been released on when that may happen.
Bitcoin’s market cap is now north of $23 billion, which is chump change for any asset class, however with more acceptance and wider appeal the digital currency can be divided into smaller units such as decibits, millibits and centibits to make smaller transactions possibly.
Ethereum, which is the second most prominent cryptocurrency after Bitcoin, struck a new all-time high Tuesday as well, trading at $85 and it now has a market cap of $7 billion on the strength of its acceptance in gaming circles in the Asian countries.