The bitcoin price (BTC/USD) has topped $250 on Bitstamp, trading above the mark for the first time since plunging 13% on August 19.
The milestone caps a steady 3-week climb that has seen the digital currency gain 12% from its $223 support level.
The streak helped bitcoin cross back above its 50-day moving average (MA) for the first time since early August.
After volatility in August and another foray below $200, it was tempting to write off Bitcoin’s currency, as was common following price plunges in the past. Increasingly overshadowed by its blockchain and other emerging distributed ledger technologies, it seemed intuitive that the currency’s time as a passing fad was up.
eToro’s Dylan Holman on Introducing Bitcoin to the Premier LeagueGo to article >>
Yet, 2015 has shaped up to be a stable year for bitcoin. With the exception of a few volatile periods, its trading has been calmer than many stocks, commodities and even fiat currencies.
One might have also expected a continuation of August’s volatility this quarter, as was the case in 2014. Instead, Q4 has shaped up to be one of the most stable on record, suggesting that August’s volatility was at least partly induced by the upheaval gripping global financial markets at the time.
Bitcoin’s newfound stability may increase its appeal with institutional investors and hedge funds, which may perceive it as a reliable store of value- perhaps, for some, as a digital form of gold. Conversely, it is possible that the advent of regulated exchanges, instruments (and possibly soon, derivatives) and indices has helped smoothen the trading journey, attracting mainstream investors who remained on the sidelines during more wild times.
Litecoin (LTC/USD) is challenging a 6-week high of $3.15. The LTC/BTC rate is holding steady near 0.0127.