Dubai: Bitcoin known for its wild swings struck a new record above the keenly watched $4,000 (Dh14,680) mark even as an offshoot called as Bitcoin cash failed to gain popularity.
Bitcoin prices traded at peak of $4,225.40 on Sunday, a new peak, before trading 3.14 per cent higher at $4,040.55.
“It is still not too late [to encash on the rally],” said Ari Paul, CIO and managing partner of Block Tower Capital in a tweet, referring to an old update where he expected a five times rally in Bitcoin prices in December 2016, when prices were less than $800.
The price gains come at a time when geopolitical uncertainty gained pace after crisis between US and North Korea, with Trump warning North Korea that they were “locked and loaded” should they do anything unwise.
There is a belief in the market that some of the safe haven demand, which originally went to gold, may have moved to bitcoins.
Growing confidence
Bitcoin has been surging and amid growing confidence in its longevity due to its resilience after the crisis, that resulted in a split in the underlying bitcoin technology.
A few days after the split bitcoin established SegWit, which is a modification that allows for more transactions to take place. These two tech related developments has boosted investors confidence in its future.
Bitcoin prices have gained more than $1,000 since August 1.