Bitcoin price: The crypto token shot to an all time high today
Bitcoin has hit a high of more than $7,400 (£5,631) today, according to CoinDesk, as the cryptocurrency breaks yet another record.
But many analysts have issued warnings, with Credit Suisse CEO Tidjane Thiam labelling the cryptocurrency “the very definition of a bubble”.
The price of bitcoin was boosted when derivatives operator CME Group announced it would introduce bitcoin futures contracts this year.
The CoinDesk tracker shows the latest price below.
Bringing you live updates on Bitcoin and the latest price news. All times BST.
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.
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.
7.30am: Reiss Smith taking over live reporting from Sebastian Kettley.
Thursday November 2
6pm: Boost in bitcoin comes after CME announces plans
The boost in the price of bitcoin comes after CME, the world’s largest futures exchange, has announced plans to launch bitcoin futures in the fourth quarter pending regulatory review.
CME Group chairman and CEO said: “Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract.”
The futures would be settled via cash and based on its CME CF bitcoin reference rate. Shortly after the announcement bitcoin rose to a record high.
5.20pm: Coinbase users grow by 100,000 in just one day
More than 100,000 cryptocurrency users joined the large digital currency exchange in the wake of CME’s bitcoin futures market approval.
The figure comes courtesy of investor and entrepreneur Alistair Milne who has been tracking the exchange’s user base figures.
Coinbase itself has boasted that its number of clients has more than doubled since the start of the year.
There are now 11.9 million Coinbase users owning 39.9 million crypto wallets.
2.10pm: 2017 is so far bitcoin’s strongest year on record
When bitcoin broke through the $1,000 (£761) barrier in January 2017, many traders assumed that the token will peak around that price for next 12 months.
The digital currency however continued to defy expectations, smashing through record after record on an upward trajectory.
This is how bitcoin performed so far through 2017, according to Coindesk:
- January 4: $1,129.87 (£860)
- March 3: $1,290.79 (£983)
- May 10: $1,756.80 (£1,338)
- June 11: $3,018.55 (£2,299)
- August 16: $4,425.30 (£3,371)
- September 1: $4,950.72 (£3,372)
- October 15: $5,697.39 (£4,340)
Bitcoin price chart: 2017 is the crypto token’s strongest year on record
12.30pm: Is Amazon preparing to integrate bitcoin into its service?
Tech giant Amazon could be looking to jump the bitcoin bandwagon, after Coindesk revealed that Amazon purchased three bitcoin related web domains.
However bitcoin journalist Stan Higgins pointed out that this could simply be a move to eliminate any confusion between itself and unrelated crypto token Amazon Coin.
He said: “At this time, it’s not entirely clear what purpose the domain names will serve.
As posited by DomainNameWire, Amazon may be simply moving to safeguard its brand.
“Back in 2013, Amazon secured “amazonbitcoin.com,” which currently redirects to Amazon’s main page – an arrangement that further suggests the protective intent of the registration.
“Alternatively, Amazon could be seeking to avoid confusion between cryptocurrencies and Amazon Coin, a virtual currency product introduced in 2013 that serves as an online payment method for customers.”
Noon: Sebastian Kettley takes over live reporting from Reiss Smith
11.20am: Bitcoin surges past $7,355.35
Bitcoin has hit another record high, breaking through the the $7,000 (£5,278) barrier for the first time and peaking at $7,355.35 (£5,604.04).
10am: Allianz issues investment warning
Allianz chief economic advisor Mohamed El-Erian has warned that those buying into bitcoin assuming it will be adopted by banks and financial institutions could be in for a shock.
He told CNBC: “My major concern over the long term is: Is the assumption in the pricing about adoption consistent with reality?.
“That’s the issue that investors should ask if they’re holding bitcoins for a couple of months.”
9am: Reiss Smith taking over live reporting from Joe Tambini
Bitcoin price: Experts belive that bitcoin’s surge is a sign changing moods in the world of business
Wednesday November 1
10.20pm: US sheriff’s office to use bitcoin to fight crime
Benton County Sheriff’s Office in Arkansas is piloting a program that involves using bitcoin to help combat online crime.
The division will use the cryptocurrency for undercover operations as they seek to crackdown on child pornography the the sexual exploitation of underage individuals.
Benton County prosecutor, Nathan Smith has welcomed the scheme.
“The Sheriff’s Office deserves credit for creating a pilot program with the goal of depriving criminals of that safe haven,” he told Northwest Arkansas’ Democrat Gazette.
“Ultimately, attacking crime online has a direct impact on the safety of our communities, and I am grateful that our law enforcement officers are being proactive in that effort.”
8.25pm: Bitcoin Cash surges 50 per cent in a week
After an extended period of decline, bitcoin cash has skyrocketed by 50 per cent in just one week.
From September 21 to October 21, the bitcoin cash price plummeted by $200 (£150) to near $300 (£230), according to Cryptocoinnews.com.
But after in the final week of October, the currency climbed a staggering $150 (£113) to end the month on £450 (£340).
8pm: Joe Tambini taking over live reporting from Sebastian Kettley
Bitcoin price: Coindesk estimates suggest bitcoin could keep growing beyond $7,000
6.38pm: Why is bitcoin on the rise?
Jordan Hiscott, chief trader at ayondo markets, believes that bitcoin’s growth model is a sign of changing paradigms in the world of business.
He told Express.co.uk: “We are in an age where technology is changing the dynamic of the business world.
“Older, traditional organisations are seeing their long-held dominance challenged by ‘disrupter’ companies.
“For me, it’s no surprise that another disrupter, this time in the form of an asset or currency, is picking up speed.”
“Bitcoin, with its decentralised exchange, means that all transfers and transactions are peer to peer. Importantly, no bank or government is involved in these transactions.
“This will resonate hugely with those affected by the printing of money by governments after the 2008 credit crisis.”
Bitcoin price: At 2.08pm the crypto token was worth five times more than an ounce of gold
5.42pm: Bitcoin rally could see price spike to $7,000 in by the end of the month
Market analysis shared by Coindesk.com suggests that bitcoin is en route to breach $7,000 (£5,278) towards the end of November or start of December.
Coindesk said: “A break above the rising channel ceiling would open doors for $7,000 (£5,278) (psychological resistance) and $7,076 (5335.95) (127.2% Fibonacci extension).
“A technical correction is always a possibility after a rally of such epic proportions.
“Only an end-of-day close below the rising channel support (seen today at $5,690) would signal a short-term bullish-to-bearish trend change.
Bitcoin price: The cryptocurrency token is witnessing unprecedented growth on the crypto markets
4.53pm: Cryptocurrencies top $185 billion as bitcoin price surges
Digital currencies have seen incredible growth this year, with the total value of cryptocurrencies topping $185 billion ($139 billion) around 10.52am, accordant to Coinmarketcap.
The market cap of bitcoin alone stands at $110 billion (£82.9 billion) as of 4.50pm.
Bitcoin has so far reached a high of $6,629 (£4,988.99) as of 4.52pm, and slipped to a low of $6,357.91(£4,784.96).
2.08pm: Bitcon price is now five times higher than an ounce of gold
The bitcoin token is trading at $6,509.05 (£4898.71) at 2.08pm, which is five times the worth of an ounce of gold, which is trading at $ 1,278.45 (£962.16), according to JM Bullion.
Overall bitcoin has seen an unprecedented growth of over 800 percent in the last 12 months.
When bitcoin entered the market on January 1, 2017, it was trading at just below $1,000 (£752.60)
2pm: Sebastian Kettley takes over live reporting from Reiss Smith
1.00pm: Bitcoin cash rally back on
Bitcoin cash hit a four-day high of $505.90, according to CoinDesk, representing a 9 per cent gain in value over the last 24 hours.
CoinDesk says that a software upgrade to Bitcoin ABC could be driving the rally.
Bitcoin price: Bitcoin is outperforming other digital currencies on the cryptocurrency market
10.20am: Bitcoin price smashes $6,600
Bitcoin prices reached another record high in the past half an hour, climbing to $6600.84 (£4958) according to CoinDesk.
Its market capitalisation, or the total value of bitcoin in circulation, topped $110 billion (£826b)
9.15am: SegWit2x upgrade draws criticism
Alex Morcos, co-founder of Chaincode Labs and a contributor to Bitcoin Core, is one of many resisting the SegWit2x upgrade which threatens to split Bitcoin in two.
SegWit2x was born from the New York Agreement during this year’s Consensus conference, which Marcos has argued made no attempt to win consensus from the community.
“The product of the meeting was not a proposal for how we should scale Bitcoin,” Marcos told Forbes.
“The product was a declaration that the signers of this agreement were going to be changing the rules at a certain time in the future and that was going to be the Bitcoin that they were running.”
8.00am: CME futures approval reminiscent of financial crash
Some analysts said the a potential futures launch could have worrying similarities to conditions which led to the financial crisis of 2007-2008.
Joe Saluzzi, a principal at Themis Trading, is worried that regulators could be persuaded to approve a growing list of exchange-traded funds (ETFs) if CME get win approval.
He tweeted: “The SEC (Securities and Exchange Commission) rejected the Bitcoin ETF because they said the underlying bitcoin markets were unregulated.
“Apparently, the CME doesn’t care about the underlying bitcoin markets and the potential for fraudulent and manipulative acts.
“Placing a “futures” market wrapper on an unregulated market to generate volume seems like a profit-oriented motive.
“Remember the CDO (collateralised debt obligation) wrapper around all those crappy mortgages during the financial crisis? Placing a wrapper doesn’t make it safe.”
Mr Saluzzi told CNBC: “I have no problem with bitcoin. I like the concept.
“I have a problem that on Wall Street the innovators are trying to package something up and put a derivative label on it when they really don’t know what’s underneath.
“It reminds me of the financial crisis all over again.”
“There could be spoofing, there could be layering, there could be all sorts of manipulation going on in bitcoin now, and nobody knows. “Until they say they are watching and making sure there are no manipulations and fraudulent activities, until they say we have a better regulatory system, I think we are playing with fire.”
CME has said that bringing bitcoin to the regulated market could increase stability.
“Offering a futures contract on a regulated marketplace brings a number of benefits to this new market including transparency, price discovery and risk transfer — all of which will better enable institutions and other market participants to manage their risk as the bitcoin market develops,” a spokesman said.
Initial reporting by Reiss Smith