An all-time high of 1169.04 dollars was seen for Bitcoin on Coinbase and 1167.52 dollars on Bitstamp on this Thursday afternoon. Bitcoin is a digital currency that has no physical form and answers to no central bank or government.
Although, cryptocurrency is still a little dollars short from their record high of 1165.89 dollars that it achieved in November2013, according to the Bitcoin Price Index (BPI) of Coindesk.
A lot of media outlets like Business Insider have reported that this digital currency has in fact reached their all-time high. But this is just because of a lot of discrepancies in the pricing data that is provided by various exchanges.
The founder and Chief Executive Officer at CryptoCompare, Charles Hayter said that there are about 50 bitcoin exchanges or more and each operate more or less independent from each other. The prices across currencies and across exchanges are rarely ever uniform, he added.
A blockchain analyst and products lead at ARK Invest, Chris Burniske also added that coins that are purchased in yuan on some of the Chinese exchanges are trading at a really big discount to their relative value in US dollars.
But how did bitcoin reach these fresh all-time highs? What is the reason that is driving the value of this currency, which is not recognized by any tax authority and only accepted by a few of the retailers? The answer to this was a pure speculation in the year 2013.
Things are a bit different this year. Bitcoin infrastructure is now more developed. The market is more liquid and there might be a regulatory approval for the first bitcoin ETF soon. Bitcoin has become handier in getting around a lot of capital controls like imposed in China, where most of the bitcoin trading occurs.
A decision on the Winklevoss Bitcoin Trust that was proposed to the SEC is expected to be delivered by 11th March and two more ETFs focusing on bitcoin are also under careful consideration.
Although a lot of people are under the impression that an ETF based on bitcoin is going to be much easier to get approved under President Donald Trump’s administration, some like Spencer Bogart, who is an analyst of bitcoin at Needham and Co. still believes that the approval chances are less than 1 in 4.
Bogart also mentioned that in case an ETF gets approved, according to him, there might be a soar in prices of the cryptocurrency as most of the institutional investors would be rushing to gain some exposure to this cryptocurrency, whose launch was as back as January 2009.