Bitcoin Nears $10,000 During Black Friday Weekend’s Shopping Frenzy
Bitcoin has hit a new all-time high of $9,724 on Sunday and was last seen at $9,674.90, up 3.97% on the day, according to Kitco’s aggregated charts.
“The move appears to be retail driven,” CNBC quoted Brian Kelly, CEO of BKCM, as saying on Sunday.
Aside from the shopping frenzy, Coinbase — the largest bitcoin exchange in the U.S. — registered around 100,000 new accounts between Wednesday and Friday, with the new total of accounts breaching 13 million.
The gains also come ahead of the launch of a new a Bitcoin futures contract by the Chicago Mercantile Exchange (CME), which is scheduled for the second week of December.
Some Wall Street strategists are very bullish on bitcoin. Tom Lee, co-founder of Fundstrat Global Advisors and former chief U.S. equity strategist at JPMorgan Chase & Co, sees bitcoin rising to $11,500 by mid-2018.
Standpoint Research also said last week that bitcoin could climb as high as $14,000 in 2018.
More institutions have been embracing the bitcoin revolution. Among the latest, is the Old Mutual Gold & Silver Fund, which manages $220 million of what is mostly precious metal equities.
The fund is planning to allocate up to 5% to cryptocurrencies, according to its manager, Ned Naylor-Leyland. The plan is to buy bitcoin, make profit and reinvest into gold and silver assets.
But, not everyone is as thrilled about bitcoin. Goldman Sachs Group Inc. said in October that gold is a better asset to own when compared to all cryptocurrencies, adding that bitcoin is not the “new gold.”
“Gold wins out over cryptocurrencies in a majority of the key characteristics of money,” Goldman said, disproving the idea that bitcoin is the “digital gold” due to its limited supply.
Also, in a recent interview with Kitco News, Rick Rule, president and CEO of Sprott U.S. Holdings, said that even though bitcoin might be a more exciting option than gold this year, investors should not get distracted by things that “don’t matter.”