Bitcoin prices came within striking distance of its earlier record peak on Monday even as traders shrugged off warnings of restrictions from China, which mines most of the world’s cyrpto-currency.
On Monday, Bitcoin prices hit a high of $5,751.09 (Dh21,123.75), not far away from its previous day’s record high of $5,808.72.
“There are many explanations for the rise, such as Amazon bringing Bitcoin on their platform, Goldman Sachs exploring the idea of bitcoin desk, geopolitical risk providing the tailwind and the mighty dollar losing its throne,” said Naeem Aslam, chief market analyst with Think Markets.
“We think it is very likely that the price could touch $7,000 very soon and that is our year-end modest target,” Aslam added.
The valuation brings the total market capitalisation at $94 billion, which is equal to that of PayPal, Netflix and Morgan Stanley.
Bitcoin prices have recovered from a low of near $3,000 in September, when Jamie Dimon, the chief executive officer of JP Morgan called it a “fraud” amid renewed calls from China to impose restrictions on Bitcoin exchanges. Prices have recovered since then and touched a record high of near $6,000.
“The rise of Bitcoin has been parabolic, volatility stays very high and it is nearly impossible to assess what should be the fair value of cryptocurrencies,” Charles-Henry Monchau, managing director, chief investment officer and head of investment management at Al Mal Capital told Gulf News via email.