Bitcoin surges to new record high
On Wednesday morning it rose past the $64,000 mark ‒ the equivalent of around £34,400 ‒ per Bitcoin.
It’s a sharp increase over just a couple of weeks. Back on 24 March Bitcoin was valued at $51,315 (£37,331), having only recently passed the $50,000 mark. Over a year the rise is even more extraordinary. In April last year a single Bitcoin was valued at just $6,877 (£5,447).
The increase comes off the back of Coinbase, a cryptocurrency exchange, listing on the Nasdaq today. The firm will be offering its shares through a direct listing rather than an IPO, with an initial price of $250 (£181) per share.
Expect more regulation
Nigel Green, CEO and founder of advisory firm deVere Group, said the Coinbase’s listing was a “truly momentous day for the cryptoverse”, but warned that investors should expect much greater government scrutiny of the industry as a result.
He continued: “Governments, central banks and regulators will be keen to protect the currency status quo. We should expect considerably higher levels of regulation in the crypto market. Indeed, I believe it is inevitable.”
However, Green argued that “proportionate” regulation should be embraced, as it will help protect investors and tackle criminality.
Is Bitcoin a bubble?
There have been plenty of warnings that the Bitcoin price rises are a bubble, which investors should avoid getting caught up in.
These warnings are reinforced by the fact that significant numbers of Bitcoin investors apparently have little in the way of savings, potentially exposing them to hardship should the value of Bitcoin crash.
However, the lack of regulation and inherent risks are unlikely to bother some investors for long if the price continues to rise at this rate.