Bitcoin (BTC/USD) has continued its hot streak, climbing another 6.5% to $319.50 on Bitstamp.
Today’s rise is likely to be a game changer for bitcoin in 2015. At its peak, it effectively erased all losses from this year.
Should the price hold above $300 for a few more hours, it will also be its longest stretch above the mark this year.
The month-long winning streak, which has added roughly 42% to bitcoin’s value, has been far more gradual than the sudden, speculation-driven spikes above $300 in January and July. Therefore, its chances of lasting into the mid or long terms are better.
Hitting the $300 milestone was psychologically key and was likely a bullish signal for traders to start buying. Should bitcoin break above $320 and enter positive territory for the year, prices may accelerate higher.
Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>
Bitcoin is now trading 27% above its 50-day moving average (MA), which also challenges the highest spreads this year.
Once again, the gains have been sharper than the norm over the past month. There is a wide price disparity between exchanges. Prices hit a peak of $312 on BTC-e $330 on Huobi- a 5.6% gap. In addition to the possible indication of increased instability, the gap also shows that markets still have a way to go when it comes to efficiency.
Some traders may be thinking in seasonal terms. The bitcoin market was exploding this time two years ago, and spiked by over 40% within a week last year, after which it fell hard to end 2014.
Shares of Bitcoin Investment Trust (OTCMKTS:GBTC) hit a 3-month high of $30.25, which is roughly in line with their equivalent value in bitcoin, and continues their new trend of alignment with bitcoin prices. GBTC’s price premium, which has typically ranged between 10% to 25%, has gradually disappeared this month.
Litecoin once again remains uninspired, languishing near $3.05. The LTC/BTC rate thus fell to below 0.01 for the first time since June.