FX.co ★ Bitcoin rally is still on

Bitcoin keeps hitting new record highs and looks unlikely to ease off. It just reached another high of USD 9,500. We are witnessing a true snowball effect — the more expensive bitcoin grows, the more popular it becomes, the more people come to learn about this brand-new currency, which drives appetite for it, while high demand, in its turn, pushes the price further up.

Yet, the bigger the snowball becomes, the more unpredictable its maneuvers are. Thus, the more people invest in bitcoin, the worse contingencies of a bitcoin price tumble are — panic will be overwhelming. Activity in trading cryptocurrency tends to peak on weekends, but not on workdays, which suggests that this market attracts a lot of newbies. By now, one of the most popular bitcoin and ethereum wallet provider and platform Coinbase has registered 13 million users versus some 10.6 million users holding accounts with Charles Schwab, one of the largest brokerage firms in the United States.

An important factor contributing to the bitcoin rally is global acceptance of cryptocurrencies. Just recently cryptocurrency was merely discussed by some PC amateurs, but today digital money seems to become an integral part of our life. So, what the cryptocurrency hype is all about? Is it a new bubble or the dawn of a whole new financial system? We shall see. As the mankind is puzzled over the new phenomenon, bitcoin keeps surging to new records.