Bitcoin continued to record daily consecutive highs when it managed to double the 2017 high price, at $ 41,530 or RM167, 449 per Bitcoin. Bitcoin has jumped 5% in just a few hours.
After reaching that high price level, investors began to take the opportunity to withdraw some of their investments. The price of Bitcoin has declined back to $ 36,618 on Bitstamp before rising to its current level of $ 41,133.04 or RM 165,848 as of 9.20 p.m.
Bitcoin has recorded a jump of almost 1000% since its lows in March. It hit $ 30,000 for the first time on January 2 after surpassing the $ 20,000 level on December 16.
Some market analysts have initially warned that a correction will occur after reaching the $ 40,000 price level, however bitcoin continues to record gains above that level.
One of the other factors driving the increase in the price of bitcoin is the increasing demand from institutional and corporate investors. The nature of bitcoin that can provide more lucrative returns in an economic situation with negative interest rates and low bond yields has attracted the interest of many parties.
JPMorgan strategists on January 5 have stated that Bitcoin is a rival to gold and can be traded up to a price level of $ 146,000 or RM 588,672 if it is recognized as a ‘safe haven’.
Although Bitcoin gives a lucrative return, economists also warn that there is a risk of a 'bubble' bursting.
