Bitcoin Price Hits Historic New Milestone : Bitcoin’s price rose above $5,000 for the first time today.
The CoinDesk Bitcoin Price Index (BPI) hit a high of $5,013.91 at 02:25 UTC, market data shows, staying above that level over the next 10 minutes of trading. The price then dipped below the $5,000 mark, falling over the next hour to a low of $4,867.18 at 03:28 UTC.
Market data points to Chinese bitcoin exchange OKCoin leading the spike, with that market hitting a high of $5,149.
Markets then climbed back above $4,900, reaching $4,916.39, BPI data shows, before sliding again. As of press time, bitcoin’s price is trading at $4,877.36, according to the BPI.
A week ago, markets were at ranging between $4,340 and $4,370, and on Tuesday the weekly low was recorded at $4,221.44. Yet in the past few days, markets saw significant surges, shooting past the $4,700 and $4,800 levels to hit new all-time highs.
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This piece has been updated.
Overall, it was the largest sell-off in the cryptocurrency markets since July 15, when the total value of the asset class plunged roughly 12 percent from $72 billion to $63 billion. However, that decline was part of a multi-day sell-off that saw prices drop more than 25 percent on what was then concern over bitcoin’s technical roadmap.
At press time, market observers seemed split on how to read the market movement.
In remarks to CoinDesk, some stated it might be too early to say the market has peaked given the recent upswell in institutional interest and the finite nature of new cryptocurrency creation.
On the latter point, some went so far to speculate the decline could be a “bear trap,” one that quickly opens the door for larger gains.
“Since bitcoin is getting a lot of media attention lately a lot of people are looking for a moment to enter the market,” Bram Ceelen, founder of cryptocurrency brokerage AnyCoin, told CoinDesk.
Others pointed to declines in July and May as evidence the market has still retracted, even during its 2017 rally, and that further declines were possible.