Bitcoin has been breaching key levels lately, continuing its forceful rally of the past couple of months. The gains could prompt more clients to ask financial advisors about the digital currency again.
About a week ago, Bitcoin breached $9,000 for the first time since May 2018, my Barron’s colleague Ben Walsh noted last Monday.
It didn’t take long for it to shoot above $10,000 and then $11,000, although the cryptocurrency’s trading volume remains muted, Barron’s Avi Salzman writes this week.
Recent levels are easily more than two or three times the $3,000-to-$4,000 range Bitcoin navigated late last year and during the first three months of 2019.
Finding a clear catalyst for Bitcoin’s price swings isn’t always easy. Salzman writes that the latest strength likely stems from
announcement last week about its plans to launch a cryptocurrency. The news offers validation for digital currencies, although Facebook’s coin, Libra, will differ significantly from Bitcoin, he notes.
Meanwhile, Bitcoin futures contracts indicate hedge funds and other big traders are betting the cryptocurrency’s price will fall, The Wall Street Journal reports. It is mostly smaller investors who are making bullish futures bets.