Bitcoin races past $5000 to a new all-time high

Bitcoin races past $5000 to a new all-time high

Bitcoin jumped 6% today to break through $5,000 for the first time ever. Ethereum tokens, the second largest digital currency, were up about 2%, and bitcoin cash - an alternative formed by early bitcoin developers gone rogue - had gained close to 3%. The value of Bitcoin has jumped 8% on the day as investors gain more confidence in the cryptocurrency market. Beijing ordered cryptocurrency exchanges to stop trading and block new registrations, due to fears that increasing number of consumers piling into the bitcoin market could prompt wider financial problems.

The validation of even one Wall Street institution would "change bitcoin" by bringing in lots of big money. Authorities in Russia also recently addressed the topic, with Russian President Vladimir Putin offering assurances that plans to regulate the currency would place no "excessive barriers" to trading - opening up a major potential market, as Fortune notes.

Using bitcoin allows people to bypass banks and traditional payment processes to pay for goods and services directly. And last month, JPMorgan CEO Jamie Dimon called the currency a "fraud" that will "blow up".

According to data from SEMrush, a search engine data analytics company found the price had a 91% correlation with Google searches surrounding bitcoin, suggesting news surrounding the cryptocurrency increases the valuation of Bitcoin.

"Yet bitcoin was created to operate outside of the influence of governments and central banks and is doing exactly that".

The soaring value of bitcoin and other cryptocurrencies comes despite growing warnings over a price bubble.



Other news