The price of bitcoin has surged to a new all-time high this week, following a strong upwards trend in recent months.
The price of bitcoin rose $60 on the day during trading yesterday, breaching the $1700 mark for the first time in the currency’s history. At the time of writing, the market remained buoyant, trading at $1733 per bitcoin.
The gains represent a growth of 70% in the currency’s value over 2017 so far, and increases of over $200 on the week. In January, bitcoin was trading at under $1000.
Alternative cryptocurrencies have enjoyed even more rapid growth of the same period, scaling up 600% on the year’s trading so far.
The price rises have been welcomed by speculators, reflecting the growing optimism and confidence that surrounds cryptocurrencies.
Non-traditional currencies that are not dependent on banks or central government, cryptocurrencies like bitcoin have experienced huge rises in value across the board.
At a time of heightened global political uncertainty and unprecedented growth in the profile and use of cryptocurrencies online, bitcoin looks to be capitalizing on these trends.
As the world’s fastest growing currency for the last two consecutive years, bitcoin’s additional growth is already rewarding early investors.
But with such pronounced growth in cryptocurrency markets this year, some analysts have suggested that bitcoin and others could be heading towards a market bubble, with values being inflated beyond the rate of annual user growth.
Specifically, the so-called channel resistance point at $1717 has been suggested as the turning point in the market, where bitcoin becomes effectively overvalued.
Predicting a bubble beyond this level, some pessimistic reports would now suggest bitcoin is heading towards unsustainable highs.
Others remain unconvinced, especially with regards to bitcoin. As the quintessential blockchain cryptocurrency, its use appears already more embedded in online markets than some other currencies.
CFO of bitcoin exchange The Rock Trading, Andrea Medri, said bitcoin likely still held upwards potential long-term.
“I’m not worried about bitcoin…most likely we will see a correction, but the long-term trend has been and will be always up.”