Bitcoin price LIVE: Bitcoin smashes through $7,400 amid worries bitcoin bubble will burst

Bitcoin price LIVE: Bitcoin smashes through $7,400 amid worries bitcoin bubble will burst

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broke through another record today, peaking at $7,454.04 (£5693.58), according to crypto exchange CoinDesk.

The digital currency has seen unprecedented growth this year, but experts are concerned these are signs of an imminent crash.

UBS economist Paul Donovan, likened the growth to the catastrophic 17th century tulip craze, that brought down the market in 1637.

The price of bitcoin skyrocketed this week after Chicaqo based CME approved it for the futures market by the end of the year.

The CoinDesk interactive tracker shows the latest price below.

Bringing you live updates on Bitcoin and the latest price news. All times in BST.

4pm: Bitcoin will continue to grow as more users adopt crypto currencies

Gary McKay, CEO and founder of blockchain start-up APPII, thinks that bitcoin will grow even it the digital currency is volatile.

He told Express.co.uk: “Undoubtedly, we’re staring at the horizon of a token economy – where cryptocurrencies like Bitcoin and Ether will be used to easily pay for goods and services instead of the traditional pound.

“The rise of this new token economy has been clear to investors of Bitcoin and cryptocurrencies for a while now.

“But, the rise in cryptocurrencies’ overall value will bring high levels of volatility in its price as sophisticated investors lock in profit.

“The future token economy, based on using cryptocurrencies and tokens, is coming at us very quickly. Everyone will have a share of value, rather than value being held by the big players at the centre.”

Bitcoin price: gold bitcoin tokenGETTY

Bitcoin price: Many experts are positive that bitcoin will continue to grow its mainstream appeal

3pm: ‘There is no bitcoin bubble’ claims expert

Iqbal Gandham, UK Managing Director at eToro, thinks that bitcoin’s rise will eventually correct itself, but this is not a sign of a bubble about to burst.

He told Express.co.uk: “We don’t think there is a market bubble. There will likely be a correction, as there is every time we see a sharp rise, but viewed through the lens of the last two to three years, Bitcoin has risen steadily.

“This latest rally has been in part driven by CME’s decision to launch Bitcoin futures later this year, which is anticipated to bring more investors to the asset, and is the latest sign that Bitcoin is moving into the mainstream. 

“Additionally, we think that the prospect of the upcoming November fork in Bitcoin’s blockchain is also driving investors towards the currency.”

Bitcoin price over the past 12 hoursCOINDESK

Bitcoin: The cryptocurrency skyrocketed after being approved for CME’s futures market

12.50pm: Bitcoin ‘will survive’ thanks to its users

CommerceBlock CEO Nicholas Gregory is certain that bitcoin’s dedicated user base will strive to keep the cryptocurrency alive.

He said: “Yes there will be highs and lows, but it is society’s desire to adopt bitcoin and use it in their everyday lives that will ensure its continued existence, not the excesses of a few currency speculators chasing the market. 

“To be fair to them, they think they can see where this is going and they’re betting on Bitcoin changing the world. 

“I happen to think they’re right, though where fair value lies at this stage is anybody’s guess.”

12.35pm: Bitcoin could repeat the mistakes of the dotcom bubble, expert warns

Guy Stephens, technical investment director at Rowan Dartington, has warned that bitcoin could face the same pitfalls of the infamous dotcom bubble of the 1990s.

He said: “Some investors in Bitcoin may also not be aware that there are tax implications. Just because something is unregulated it does not mean you don’t pay tax. 

“This may make investors reluctant to sell their holding in Bitcoin because they are sitting on healthy profits and don’t want to be stung with capital gains tax. 

“This is the mistake that many made back in the dotcom bubble, and rather than realising taxable gains they got hung, drawn and quartered when it collapsed.”

Bitcoin price: live updates and latest newsGETTY

Bitcoin price: The digital currency broke through another price record on Friday

11.30am: Bitcoin ‘crossing the divide from wild west to mainstream’

“This is bitcoin crossing the divide from the wild west of finance to the mainstream,” Charles Hayter, CEO of cryptocurrency comparison website Crypto Compare, told CNBC. 

“Futures from an incumbent exchange bring bitcoin and cryptocurrencies into the regulatory fold. This allows more complex financial products to be created and will eventually open the doors to institutional money.”

7.30am: Bitcoin ‘can’t be considered a currency’

A leading financial commentator and investor has warned that Bitcoin can’t be considered a currency because it is too unstable.

Mohamed El-Erian told CNBC: “Bitcoins aren’t there yet, they’re still trying to find stability so it’s more of a commodity than it’s a currency.”

Credit Suisse CEO Tidjane Thiam was similarly cautious at a press conference yesterday.

“From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble,” he said.

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