Bitcoin climbs above US$11,000 amid renewed mainstream interest, but observers warn caution is warranted
- The market has matured greatly since the last time bitcoin crossed US$10,000: eToro senior analyst Matt Greenspan
- Don’t get fooled by the dead-cat bounce this year: Empire Financial Research founder Whitney Tilson
Bitcoin traded above US$11,000 for the first time in 15 months, recouping more than half of the parabolic increase that captured the attention of mainstream investors before the cryptocurrency bubble burst last year.
“The bounce-back of bitcoin has been fairly extraordinary,” said George McDonaugh, chief executive and co-founder of London-based blockchain and cryptocurrency investment firm KR1. “Money didn’t leave the asset behind, it just sat on the sidelines waiting to get back in.”
Bitcoin surged as high as US$11,251.21 on Monday, a 13 per cent gain from late Friday that put it at the highest levels since March 2018. It was at US$10,815 as of 7:10am in Hong Kong.
The largest cryptocurrency had a furious run higher in late 2017 that culminated with a top above US$19,500, before an almost-as-relentless move downward over much of 2018. It languished around the US$3,300 to US$4,100 range for several months.
Bitcoin’s ride back accelerated in April, puzzling onlookers trying to pinpoint a reason for the surge. A study by Indexica, an alternative data provider, showed three main drivers: a more complex conversation surrounding bitcoin, fewer concerns about fraud and a shift in the tense of how bitcoin is talked about from the past to the future.
