Bitcoin Surpasses $4,000 As Cryptocurrencies Rise In Value

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Bitcoin surpassed $4,000, pushing higher as many cryptos climbed. Shutterstock

Bitcoin prices broke though $4,000 today, as many cryptocurrencies rose in value.

The world’s largest digital currency by market capitalization (market cap) had climbed to as much as $4,063.74 at the time of report, according to the CoinDesk Bitcoin Price Index (BPI).

At this level, the cryptocurrency had surged roughly 10.5% in the last 24 hours.

Other digital currencies also experienced notable gains during the day. Ether, the second-largest cryptocurrency by market cap, had climbed more than 18% in the last 24 hours, while Litecoin had risen more than 11%, CoinMarketCap figures show.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin’s Recent Declines

Bitcoin managed to break through $4,000 after fluctuating below this level since September 13, additional BPI figures show.

The digital currency has experienced some notable declines in the last few weeks, after it surged past $5,000 on September 2.

Since that day, Bitcoin has fallen to as little as $2,951.15 as the broader digital currency space has experienced significant turmoil.

Ongoing Regulatory Developments

In recent weeks, three major Chinese exchanges – Huobi, OKCoin and BTCC – have all announced that they plan to cease operations in the coming months.

The Asian nation’s government has also banned initial coin offerings (ICOs), declaring these token sales illegal.

ICOs have drawn regulatory scrutiny from other regulators.

In July, the U.S. Securities and Exchange Commission (SEC) announced that the tokens sold through these offerings could, in some cases, be securities, making them subject to U.S. securities laws.

Cryptocurrencies See Red

Amid this rising scrutiny, cryptocurrencies suffered heavy losses, their total market cap falling to as little as $97.6 billion on September 15, according to CoinMarketCap.

Since then, these digital assets have recovered sharply, their market cap rising to roughly $137.4 billion at the time of report, additional CoinMarketCap figures show.

This figure represents a more than 40% increase from the recent low hit on September 15.

Cryptocurrencies March On

The price of Bitcoin – and other digital currencies – appears to be marching higher, rising in value after suffering some temporary weakness as markets processed the recent regulatory developments.

In the long run, more stringent regulation could provide a boon to the sector, making it so that a wider number of investors have enough confidence in cryptocurrencies to invest in these digital assets.

Disclosure: I own some Bitcoin and Ether.


Source: Forbes

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