You are here: Home - Investing - Experienced Investor - News -

Bitcoin in bull market frenzy

0
Written by: Emma Lunn
26/06/2019
The price of Bitcoin has risen by more than $3,000 over the past week to reach an 18-month high.

Bitcoin’s value has soared to about $12,600 (£9,934), more than triple its value at the end of March. It’s now up 230 per cent since the start of the year.

The cryptocurrency appears on track to pass its previous record price of $20,000, which it hit in late 2017. Experts say the price surge over the past week is reminiscent of the bull market frenzy observed in December 2017.

The rally means the ratio of Bitcoin’s price to the 200-day price average – known as the  “Mayer multiple” – reached a high of 2.42, a level which was last seen in early January 2018.

The Mayer multiple quantifies the spread between the price and the 200-day price average. A ratio above one indicates Bitcoin is in bull market territory, while a ratio below one implies a bear market.

However, Coindesk warned that “the hourly chart is flashing signs of buyer exhaustion”, and said a correction to $11,000 cannot be ruled out.

Cryptocurrency experts haven’t been able to explain the dramatic rise in Bitcoin’s price, although some have pointed to Facebook’s recent announcement about its own cryptocurrency Libra. With major companies such as Visa, Mastercard, Uber and PayPal getting involved in the crypto space by investing in Libra, the sector has gained validation.

Other theories surrounding Bitcoin’s price surge is that it’s being viewed as a hedge amid ongoing US-China trade uncertainty, and that traders are anticipating a “halving” event next year – when the rewards paid to Bitcoin miners are cut in half.

Bitcoin lost almost 70 per cent of its value during 2018 with other cryptocurrencies also falling sharply.

 

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Are you losing money with an easy access savings account?

Experts urge savers to move their cash to higher paying accounts.

Close