Bitcoin Price Rises to $1700

The price of bitcoin has risen to a record high of over $1,700 on Tuesday, according to the industry website Coindesk. This is a major milestone for the popular cryptocurrency, as it cements its position as a serious contender. Bitcoin had been on an astronomical rise over the past month, increasing in price by 43% and leaving investors clamouring for a piece of the $28 billion pie.

The combined market capitalisation of all public cryptocurrencies is at nearly $50 billion, with Bitcoin seeing a major boost. Over the past year, Bitcoin’s market capitalisation has risen dramatically, going from around $7.16 billion in May of 2016, to $27.9 billion today. Market capitalisation has increased by over $1 billion in just 24 hours (from Monday to Tuesday morning), according to Coindesk’s price index.

Bitcoin’s Long-term Trend is Looking Up

With the steady rise of Bitcoin, investors are becoming more confident. The number of investors holding a “long” position on the digital currency has increased from a low of 7,649 on April 29 to 15,279 on May 9, according to data from BFX. In the same time period, short positions have held consistently at around 17,000. This reflects the larger trend of investors speculating on a continuous rise in Bitcoin value.

Japan’s historic decision to legalize the currency as an official payment method has given Bitcoin a major bump in popularity and legitimacy in the eyes of many who had been skeptical about its long-term viability. Some analysts, however, voice concerns about Bitcoin coming close to a key resistance point, and crypto assets in general hitting a bubble, so potential investors should be wary of short-term pull-back and a potential price-correction, given Bitcoin’s unique supply and demand dynamic.

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About the author

The author is an expert in the field of multi-asset trading.