bitcoin broke the $65,000 mark on Wednesday morning to set a new record.
The digital currency passed the historical milestone at 9:43 a.m. m., eastern time. it continued to rise and was trading north of $66,900 about an hour later, according to data from coinbase.
Reading: Soars as bitcoin record
The development marks a drastic change for bitcoin, which previously set a record just shy of $65,000 in April before plummeting over the summer and falling as low as $29,800 in July.
Bitcoin largely rebounded this fall, gaining a significant boost this week when federal regulators allowed the first exchange-traded fund containing cryptocurrency-based futures to begin trading on Tuesday.
More bitcoin futures ETFs from asset managers such as ark invest and vaneck are expected to begin trading in the coming weeks.
The inclusion of bitcoin futures in ETFs could push the cryptocurrency even further ahead, some crypto watchers said.
“People want the convenience of holding bitcoin in their brokerage accounts, and there has probably been a lot of capital waiting for that product to exist and now it exists,” said garrick hileman, head of research at blockchain.com.
Still, there could be some warning signs flashing, hileman told the publication. the current rally could burst into flames, just like the last time the digital currency set the previous all-time high in April.
warned that much of the recent cryptocurrency hot run has been driven by short-term speculators using leveraged loans. interest rates on crypto loans have doubled over the past week, a telltale sign of rampant speculation.
“We saw those levels in the spring around bitcoin’s previous all-time high, and that proved unsustainable,” said Hileman, who is also a fellow at the London School of Economics.
Even with its volatility, Hileman says bitcoin is a good investment for the medium to long term as it gains traction with institutional investors.
“Right now things are skyrocketing and crypto assets are very volatile and could reverse, but if you take a longer-term perspective and put up a modest sum, you won’t break the bank,” he said. “Now is the perfect time to jump in if you’re new to crypto.”
Since 2013, bitcoin has increased more than 62,000%, according to data from coinbase.
Meanwhile, ethereum, the second most popular cryptocurrency after bitcoin, also saw strong momentum on Tuesday, breaking the $4,000 mark for the first time since May.
increased interest in cryptocurrencies from old-guard asset managers and investors means more accessible currencies (bitcoin and ethereum) will outperform more obscure “altcoins” like dogecoin or litecoin in the short term, he predicted hileman.
As for bitcoin, it’s up 41.2% in the last month alone.
david sacco, a finance professor at new haven university and a former ubs investment banker, told the publication he expects bitcoin to drop again in the short term. he noted his journey backwards over the past year.
“sometime next week, it will be back below $60,000,” he said. “I would be willing to bet money that at some point in the next three months it will go back down to $40,000, maybe $30,000.”
“Bitcoin is as volatile as any financial asset in existence right now and will continue to be so,” he said.
On twitter, however, it was all smiles among crypto fans celebrating the new record price.
“The halls of eternity echo with the screams of those who sold their #bitcoin,” boasted michael saylor, co-founder of business intelligence firm microstrategy, which has significant investments in bitcoin.