On Thursday, Bitcoin reached an all time $5000 barrier for the first time rising to about 8% on the day as investors’ previous warnings on the risks of buying into the cryptocurrency market were let off. This year, Bitcoin has brought up a more than fivefold increase even though it is still highly volatile and illiquid compared to other traditional currencies and assets.
There have been reports that Goldman Sachs is considering to offer bitcoin trading but right now investors from banks, hedge funds, and brokers are demanding a part in the biggest cryptocurrency market since 2010. Even with warnings from Russia that there are serious risks associated with this market, Bitcoin has still been gathering around 10%. Regardless of any positive or negative news released, demand will always be high.
Bitcoin almost reached $5,000 in the beginning of September but bounced back following a claim of fraud by JP Morgan and the forced exchanges to shut down in China. However, after dropping below $3,000 in the middle of that month, Bitcoin’s value reached more than 74% in four weeks.