For those of us celebrating Bitcoin’s newfound stability and hard-earned comeback to $300, take your seat belts out of storage.
In what is unfolding into another speculative frenzy, bitcoin (BTC/USD) has just soared by another 10% in a 5-hour span- its sharpest ascent this year.
Bitcoin hit $368.74 on Bitstamp, its highest level in nearly 11 months. Bitcoin’s latest milestone is its 52-week return turning positive, which is good news for hedge funds like Pantera when presenting year-over-year returns to clients, who have gotten used to seeing multiples of 0.x for nearly a year.
Prices rose as high as $385 in yuan-based trading on Huobi, but only reached $337 on BTC-e. The gap of 13.4% and BTC-e’s widening lag behind its peers are not particularly encouraging signs for what was supposed to be a new era of efficient trading, whose participants would include mainstream investors and institutions.
The latest leg of bitcoin’s rally was particularly turbulent- the cryptocurrency swung lower by nearly 4% within minutes, only to reverse sharply to today’s high.
Shares of Bitcoin Investment Trust (OTCMKTS: GBTC) closed the day during the rally’s climax. They hit a new 5 1/2-month high of $39.00, implying an underlying bitcoin value of $406, or a premium of