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Bitcoin Rises Above $11,000 as Rollercoaster Ride Continues

Published 07/04/2019, 01:23 AM
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Investing.com - Bitcoin rose again on Thursday in Asia and is now above the $11,000 level, as a rollercoaster ride that saw the coin go from $7,888 in mid-June to $13,929.8 just one week ago continued.

Bitcoin rose 3.9% to $11,686.8 by 12:41 AM ET (04:41 GMT). Ethereum slipped 0.6% to $293.87, while XRP was down 1.2% to $0.39770.

Litecoin also fell 1.1% to $119.407.

The highly volatile Bitcoin soared more than 200% at one point this year, with gains mostly attributed to Facebook’s plan to launch its own cryptocurrency, Libra.

However, the coin went into a free fall since last Thursday that took it as low as $9,728.5 earlier this week, before jumping back to above $11,000 today.

The reason behind the comeback was unclear, but analysts said traders now see Bitcoin and other major cryptocurrencies as alternative investments amid an “unstable U.S. global ecosystem.”

“The recent bullish uptick was primarily due to the destabilization of the entire sovereign ecosystem whose fiat currencies are all indexed to the US dollar,” said Alex Karasulu, Founder and CEO of OptDyn, in a Forbes report.

“The constant news of doom and gloom, of kinetic wars being averted just in the nick of time, more tariffs, and more sanctions threats being levied has markets spooked with many in search of independent alternatives.”

However, some analysts are also concerned Bitcoin might be too volatile for its own good.

“It’s almost a slam dunk now that an ETF won’t be approved any time soon, as an 81% 14-day levered rally, most of which occurred after US trading hours, is not exactly the formula for successful SEC approval,” said Jeff Dorman, investment chief for Arca.

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