The price of bitcoin surged above $5,000 this morning to a new all-time high of $5,231.28. At the time of writing, the price is hovering between $5,200 and $5,230.
The latest price surge is linked to a variety of factors. Some believe China’s restrictions on bitcoin trading may ease in the near future, after the country banned bitcoin trading last month. A report from Chinese news agency Xinhua claims that China will likely resume bitcoin trading with regulations and licenses in place, specifically targeted towards those who use cryptocurrencies for criminal activities.
In other words, China may welcome cryptocurrencies after they implement procedures like “record-keeping, licensing, AML processes, real-name, limiting large transactions,” Xinhua stated.
Meanwhile, the Chinese yuan continues to be the second most-traded currency on bitcoin after the US dollar.
Wall Street is Warming Up to Bitcoin
Others believe the surge above $5,000 is linked to Wall Street’s continued acceptance of bitcoin. Wall Street has grown increasingly tolerant towards bitcoin. Institutional investors continue to offer bitcoin investing to their customers.
At Goldman Sachs, for example, they’re rumored to be starting a “Bitcoin Desk”, according to a report from Coindesk.
Other analysts, like Thomas Glucksman, head of APAC business development at Gatecoin, have publicly stated that bitcoin will “creep closer” to $6,000 by the end of this year. However, he said that investors could expect volatility next month due to unresolved issues about the controversial SegWit2x upgrade.
Billionaire Michael Novogratz, meanwhile, has issued a $10,000 price target for the currency.
As with all of these predictions, nobody really knows where bitcoin will go.
Meanwhile, bitcoin’s jump above $5,200 hasn’t had a major effect on other currencies. Ethereum nudged slightly higher and currently sits within the $307 range. Litecoin is up to $54.37 at the time of writing.
In any case, bitcoin continues its march past new all-time highs. Could bitcoin at $6,000 be next?
Update: By the time we finished writing this news report, bitcoin had settled at a new all time high of $5240.