Bitcoin's Surge to nearly $8,000 Rekindles Memories of Bubble

Lloyd Doyle
May 16, 2019

Bitcoin climbed as high as $7,963, the most since July 2018.

The Bloomberg Galaxy Crypto Index, which tracks a basket of the largest digital assets, added as much as 9.3% before paring the gain to 6.8%.

But there is an ongoing blockchain and cryptocurrency conference in NY called Consensus, with big investors and influential market players gathered to network and discuss the current state of the industry.

Optimism is now rife among traders, given the parabollic trajectory of price growth that has shed most forecasts into pieces over the past few weeks.

While it is hard to say what might have triggered the stellar recovery, analysts point out to the signs faster of institutional adoption as companies like Fidelity Investments and E*Trade expand their presence in the industry.

"Maybe we've seen Bitcoin recapture some the previous FOMO behavior", he said in emailed remarks to Bloomberg.

Digital currency experts have weighed in on reasons for the surge.

Rival coins surged in a broad rally, with Bitcoin Cash up 24%, and Litecoin and Ether both at least 11% higher.

Hedge funds and other investors had increased their net short bet against Bitcoin in the week through May 7, the U.S. Commodity Futures Trading Commissions said Friday. When trading opened on Monday, futures traded on CME opened 12% higher.

There is no real fundamental explanation as to why bitcoin, the original cryptocurrency, hit a 10-month high on Monday.

And that's aside from the volatility - Bitcoin peaked above $19,000 in December 2017 before crashing back to earth in the succeeding months.

Other reports by Iphone Fresh

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