Bitcoin just passed $5000

Bitcoin just passed $5000

It is now worth four times more than an ounce of gold.

This morning Bitcoin shot past $5,000, and is now hovering around $5,300 - up almost 10% from yesterday.

Bitcoin smashed through the US$5000 (NZ$7000) barrier for the first time, jumping as much as 8 percent on the day as investors shrugged off the latest warnings on the risks of buying into the booming cryptocurrency market.

Bitcoin tumbled below $4 000 last month after China's central bank stepped up regulations on digital currencies, banning initial coin offerings, a popular means of fundraising for startups. The digital currency plunged below $3,000 in mid-September after the Chinese authorities announced a crackdown.

Two upcoming "forks" in the bitcoin software code, which will create rival clones of the cryptocurrency, were seen by some as a reason for the rise in price, which saw a boost after the "Bitcoin Cash" clone was created at the start of August.


The validation of even one Wall Street institution would "change bitcoin" by bringing in lots of big money.

The cryptocurrency is highly controversial, with JP Morgan boss Jamie Dimon saying that it was only suitable for drug dealers, murderers and people living in North Korea. "So we expect some investors to be surprised by bitcoin bouncing back", said Iqbal Gandham, managing director at broker eToro UK, in a note on Thursday.

- Financial analysts warn of an impending price bubble.

Neil Wilson, senior market analyst at ETX Capital, said investors in bitcoin are also buoyed by news that U.S. banking giant Goldman Sachs plans to trade the cryptocurrency.

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