Bitcoin surged above $11,000 today, extending recent gains as the cryptocurrency benefited from sustained momentum.
The cryptocurrency hit $11,190.57 shortly before 9 a.m. EDT today, setting a fresh, 13-month high, CoinDesk data shows.
At this point, the world’s largest digital currency by market value had climbed more than 250% from its local low of $3,122.34 reached in December, additional CoinDesk figures reveal.
[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.]
‘An Important Milestone’
Bitcoin broke through $10,000 yesterday, a development that generated plenty of visibility.
“$10,000 was an important milestone for a lot of people and I think we’re seeing that as Bitcoin has passed $11,000,” said Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet.
Once the world’s most prominent digital currency exceeded this price, it triggered FOMO (fear of missing out), according to several analysts.
John Todaro, director of digital currency research for TradeBlock, weighed in on this development.
“After bitcoin breached $10,000, we quickly rose to $11,000 on the back of likely FOMO buying,” he maintained.
Bitcoin The ‘Dominant’ Cryptocurrency
Dave Hendricks, cofounder and CEO of digital asset management platform Vertalo, also commented on this market sentiment, stating that bitcoin’s recent price gains have certainly been “influenced by FOMO.”
However, he spoke to the innovative asset’s continued strength.
Bitcoin “has proven time and time again” that it is “the dominant crypto currency with a cross-cultural appeal,” said Hendricks.
Thousands of digital assets have been created over the years, but bitcoin is certainly the largest, its total market capitalization (market cap) surpassing $190 billion at the time of this writing.
“Many see BTC as a strong store of value that has repeatedly (and parabolically) increased in value and reaches new ATHs after what have looked like catastrophic falls,” he stated.
Todaro spoke to bullish news affecting the industry, stating that “this past several weeks though we have had sustained positive developments in the digital currency space which have buoyed prices.”
He emphasized that while many retail investors may be hesitant to get involved, this situation could change in the coming months.
“I still think retail investors are primarily on the side lines, as Google search trends for bitcoin still remain well below the peak levels seen in 2017,” said Todaro.
“This will likely change in the next 3-6 months as you see continuous positive developments and high profile projects in the space come on line, and a sustained price rally.”
However, before bitcoin enjoys this upside, it will need to maintain its current gains, noted Garcon.
He described the digital currency’s recent price increases as “a small victory that is worth celebrating,” “we have to be wary as we don’t know if these levels are sustainable yet.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.