Bitcoin hit a fresh record high on Monday of $9,687 (£7,272) as the virtual currency shows no sign of slowing down in its pursuit of the $10,000 mark.
The cryptocurrency rose 4.5% on the Luxembourg-based Bitstamp exchange in early morning trading, which is its closest position to five figures.
Furthermore, bitcoin prices have jumped 45% in the last two weeks alone, while soaring 918% since the end of 2016 when it was trading at just $952. However, pricing of the virtual currency is notoriously volatile.
The recent surge in prices has been driven by the world’s largest derivatives exchange operator CME Group last week announcing it would start offering bitcoin futures as early as December, according to Bloomberg.
Thomas Glucksmann, Hong Kong-based head of marketing at cryptocurrency exchange Gatecoin, told Bloomberg: “The weekend’s bitcoin price hike is just the continuation of a long-term bull run on the cryptocurrency, fuelled by the tsunami of speculative trading on Japanese exchanges and the entrance of institutional investors across the world.
“It is more likely that the $10,000 psychological stratosphere will push more institutional investors into the mix.”
Bitcoin has witnessed a mixed reaction from the asset management industry, with some claiming the cryptocurrency is simply a dangerous bubble while others have pointed to its diversification benefits.
JP Morgan chief executive Jamie Dimon said he would fire anyone trading bitcoin for being stupid, claiming it would eventually blow up.
“I would fire [any employee] in a second,” Dimon told Bloomberg. “For two reasons: It is against our rules, and they are stupid. And both are dangerous.”
However, anti-benchmark asset manager TOBAM launched the TOBAM Bitcoin fund last week, which will be an unregulated alternative investment fund for investors who want to gain exposure to the cryptocurrency.
Bitcoin’s market cap currently stands at $150bn while the total of all digital currencies is $300bn, according toCoinmarketcap.com.
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