Bitcoin Breaking News: Digital Currency Hits $3,500 Mark, Soars 250 Pct

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Bitcoin Breaking News: Digital Currency Hits $3,500 Mark, Soars 250 Pct

Bitcoin’s aggressive ascent to new record peaks this week has placed the electronic money near being three times the price of gold.

Bitcoin was valued just below $590 last year, but on early Tuesday it rallied to yet another all-time high above the $3,500 level, as investors likely withdrew money from the new virtual currency spinoff, Bitcoin Cash or “Bcash,” to pout their investment in Bitcoin. The cryptocurrency traded at $3,430 at midday.

All told, bitcoin has now soared 250 percent since the beginning of 2017, advancing from only below $1,000 first week of January to its all-time peak today.

According to Fundstrat co-founder Thomas Lee: “Our initial report on the cryptocurrency saw it as a ‘store of value’ and over the course of time would be considered as an alternative to precious metal gold.”

Lee became the first key financial expert to issue a bitcoin report, entitled “A framework for valuing bitcoin as a substitute for gold.”

Year-over-year, the price increases of bitcoin are even more impressive, with bitcoin growing almost 600 percent.

As of August 8 last year, bitcoin was approximately $595, according to data provided by BPI. Whether it will rally even higher, however, remains to be seen, as the price did encounter some resistance, later dropping to $3,458. The day’s opening price was $3,431.

Meanwhile, Coindesk reported that despite bitcoin trading near $3,487 on Tuesday afternoon after reaching an all-time high of $3,525.04 earlier in the day, it is still less than $300 away from triple the price of gold. Gold futures for December delivery closed at $2.10 lower Tuesday, at $1,262.60 per ounce.

Meanwhile, Lee stressed that the overall marke value of gold is around $7.5 trillion, a figure that dwarfs that of bitcoin. At Tuesday’s prices, the virtual currency hit a market cap of almost $57 billion.

 

About Chris Miranda

Chris writes mostly about the latest in the stock market, finance, tech and business.
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