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Bitcoin zooms above $27,094

Friday, December 08, 2017

TOKYO/NEW YORK - Bitcoin extended its rally on Wednesday, breaking above $US13,000 ($F27,094) to a record high despite questions about the cryptocurrency's real value and worries about a dangerous bubble.

Bitcoin received a boost after Friday's announcement by the main US derivatives regulator that it would allow CME Group Inc and CBOE Global Markets to list bitcoin futures contracts.

The move opens the door to added regulation but also more mainstream adoption, as bitcoin futures and other derivatives would make it easier to trade the new asset class.

"Simply the perception in households around the world that the CME and the CBOE are providing legitimacy to bitcoin is really what is driving the massive rally here," said Karl Schamotta, director of global product and market strategy at Cambridge Global Payments in Toronto.

Bitcoin's ascent of over 10-fold from below $US1000 ($F2000) at the start of the year has drawn regulatory scrutiny around the world.

Some high profile individuals such as Nobel Prize-winning economist Joseph Stiglitz have said the cryptocurrency should be outlawed.

"It took a long time to establish the methodology and the way bitcoin was traded. The original appeal came from the fact they were unregulated. However it's clearly moved out of those shadows and into center stage," said Mick McCarthy, CMC Markets' chief market strategist in Sydney.

"We are in the throes of a bubble market, and one of the characteristics of a bubble market is that there is no way to know when the bubble will burst."

The current craze for bitcoin, and cryptocurrencies in general, have been likened by some to the 17th century Dutch tulip mania and more recently the dotcom bubble.

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Code Inward TTs Outward TTs
CAD 0.65010.6311
JPY 53.348150.3481
GBP 0.35320.3452
EUR 0.40320.3912
NZD 0.69270.6597
AUD 0.64710.6221
USD 0.49890.4819



Exchange Rate updated on 20th, March, 2018

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